To emerge as a dominant petrochemical player in the north-east region, providing value to stakeholders, offering best-in-class products & services, contributing to economic growth while remaining environmentally conscious.

To establish significant presence in the north-east region in petrochemical sector by way of production / sourcing and marketing of quality products, deploying efficient distribution and marketing channels to cater to the needs of target customers.

Notice 5

Chairman’s Message 9

Directors’ Report 11

Management Discussion and Analysis Report 29

Report on Corporate Governance 42

Disclosure of particulars of contracts / arrangements with related parties 49

Annual Report on CSR activities 52

Secretarial Audit Report 59

Corporate Governance Compliance Certificate 63

Independent Auditors' Report 64

Balance Sheet 74

Statement of Profit & Loss 76

Statement of changes in Equity 77

Notes to the Financial Statements 78

Cash Flow Statement 122

Comments of Comptroller & Auditor General of India 123

BOARD OF DIRECTORS

Shri Reep HazarikaManaging Director

Shri Pruthiviraj DashDirector (Finance)

Shri Manoj JainChairman

Shri Jishnu Barua, IASDirector

(w.e.f. 25.06.2021)

Shri Kashi Nath JhaDirector

(up to 18.01.2021)

Shri S K BaruaDirector

Shri R K DuttaDirector

(up to 18.05.2021)

Shri Kapil VermaDirector

(w.e.f. 06-02-2021)

Shri Harish MadhavDirector

Shri M V Ravi SomeswaruduDirector

Dr. K K Dwivedi, IASDirector

Dr. Ashutosh KarnatakDirector

(up to 20.05.2020)

Shri Saumitra SarkarIndependent Director

| 4 |

State Bank of India• Corporate Accounts Group Branch 4th & 5th Floor Parsvnath Capital Tower Bhai Veer Singh Marg, Gole Market, New Delhi- 110001

• Lepetkata Branch, PO- Barbaruah, Dibrugarh- 786007

Axis Bank Limited4th Floor, Air Conditioned Market Building1, Shakespeare SaraniKolkata – 700 071

ICICI Bank LimitedRegistered Office: ICICI Bank TowerNear Chakli Circle, Old Padra RoadVadodara – 390 007

M/s RKP AssociatesChartered Accountants

Room No 508, 5th Floor, Parmeshwari

Chatribari Road Guwahati - 781001

M/s Batliboi & PurohitChartered Accountants

National Insurance Building204, Dadabhoy Naoroji Road

Fort, Mumbai-400001

CS Ujwal Kumar KalitaH No 15, Chandra Chowdhury Path

1st Bylane Bhetapara, BeltolaGuwahati 781028

M/s Subhadra Dutta & AssociatesHouse No. 29, Krishnanagar,

Chandmari, Guwahati 781003

Corporate Identity No. (CIN)

U11101AS2007GOI008290

House No. 6, Bhuban Road, Uzanbazar, Guwahati, Assam - 781001

BCPL Petrochemical Complex

LepetkataP.O. - Barbaruah

District-DibrugarhAssam-786007

Bankers

Registered Office

Statutory Auditors

Secretarial Auditors

Internal Auditors

Cost Auditors

| 5 |

Notice is hereby given that the Fourteenth Annual General Meeting of the Company will be held on Thursday, the 16th day of September, 2021 at 3.00 p.m. at Radisson Blu Hotel, National Highway 37, Gotanagar, Guwahati, Assam 781033 with arrangements for video conference (VC)/other audio visual means (OAVM) to transact the following business-

As Ordinary Business1. Toreceive,considerandadopttheauditedBalanceSheetasat31stMarch,2021,theProfitand

Loss Account for the year ended on that date, the Board’s Report, the Statutory Auditors’ Report and the comments of the Comptroller & Auditor General of India thereon and to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT the audited Balance Sheet as at 31st March, 2021, the Board’s Report and their annexures, the Statutory Auditors’ Report and the comments thereupon of the Comptroller & Auditor General of India u/s 143(6)(b) of the Companies Act 2013, be and are hereby received, considered and adopted.”

2. To approve the payment of dividend @ 15.66% per share on the paid-up equity share capital of the Companyforthefinancialyearended31st March, 2021 and to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT in terms of the recommendation of the Board of Directors the approval of the members be and is hereby accorded for payment of dividend @ 15.66% per share on the paid-up equity share capital of the Company for the financial year ended 31st March, 2021 and the same be paid to all members whose names appear in the Register of members on the date of the annual general meeting. i.e. 16.09.2021.”

3. To appoint a Director in place of Shri Saumendra Kumar Barua (DIN 06503943) who retires by rotation, and being eligible, offers himself for re-appointment and to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT Shri Saumendra Kumar Barua (DIN 06503943) be and is hereby re-appointed as Director of the Company liable to retire by rotation.”

4. To appoint a Director in place of Shri Harish Madhav (DIN 08489650), who retires by rotation, and being eligible, offers himself for re-appointment and to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT Shri Harish Madhav (DIN 08489650) be and is hereby re-appointed as Director of the Company liable to retire by rotation.”

5. To appoint a Director in place of Shri M V Ravi Someswarudu (DIN 07309877) who retires by rotation, and being eligible, offers himself for re-appointment and to pass the following resolution as an Ordinary Resolution:

NOTICE

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“RESOLVED THAT Shri M V Ravi Someswarudu (DIN 07309877) be and is hereby re-appointed as Director of the Company liable to retire by rotation.”

6. ToauthorisetheBoardofDirectorsoftheCompanytofixtheremunerationoftheStatutoryAuditorsforthefinancialyear2021-22intermsoftheprovisionsofSection142oftheCompaniesAct,2013andtherulesmadethereunder(includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce)andtopassthefollowingresolution,withorwithoutmodification,asan Ordinary Resolution:

“RESOLVED THAT the Board of Directors of the Company be and is hereby authorised to fix the remuneration of the Statutory Auditors as appointed by the Comptroller and Auditor General of India for the financial year 2021-22.”

As Special Business 7. Toconsider,andifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasan

Ordinary Resolution:

“RESOLVED THAT in accordance with the provisions of Section 160 and other applicable provisions, if any, of the Companies Act, 2013 and the rules made thereunder (including any statutory modification(s) or re-enactment thereof for the time being in force), Shri Kapil Verma (DIN 9056466), who was appointed as an Additional Director w.e.f. 06.02.2021 be and is hereby appointed as a Director of the Company, liable to retire by rotation.”

8. Toconsider,andifthoughtfit,topasswithorwithoutmodification,thefollowingresolutionasanOrdinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force) remuneration amounting to ₹60,500/-(Rupees Sixty thousand five hundred only) plus GST & re-imbursement of travelling and out–of– pocket expenses at actual payable to M/s Subhadra Dutta & Associates, appointed by the Board of Directors for conduct of cost audit of the cost records of the Company for the financial year 2021-22, be and is hereby ratified.

RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all such acts, deeds and things and take all such steps as may be necessary to give effect to this resolution.”

Dated : 22nd August, 2021 By Order of the BoardPlace : Guwahati

Sd/-

(Ruli Das Sen) Company Secretary

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Notes

1. Due to the on-going COVID-19 pandemic and pursuant to MCA Circular No. 20/2021 dated 05.05.2020 & 13.01.2021, members can attend and participate in the AGM through VC/OAVM.

2. Attendance of members through VC or OAVM shall be counted for quorum u/s 103 of the Act and the link for the meeting will be shared separately.

3. If physical attendance is rendered totally unfeasible due to the Covid situation/SoPs prevailing at the time of the meeting, the meeting shall be held entirely through VC/OAVM and the venue may then be deemed to be the registered office of the Company.

4. In line with the aforesaid MCA Circulars, the Notice of AGM along with Annual Report 2020-21 is being sent through electronic mode to the registered Email addresses of members.

5. In line with the aforesaid MCA Circulars, the facility of appointment of proxies by members u/s 105 of the Act is not available for the meeting held through VC/OAVM.

6. Representative of the members u/s 112 & 113 of the Act may be appointed for the purpose of participation (physical or virtual) in the meeting and necessary authorisation for such representation may be forwarded to the Company.

7. The explanatory statement as required under Section 102(1) of the Companies Act, 2013, is annexed and members who wish to inspect the relevant documents referred to therein can send an email to cs.department@bcplindia.co.in up to the date of the meeting.

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Explanatory Statement pursuant to section 102(1) of the Companies Act, 2013

Agenda No. 7 Shri Kapil Verma, Deputy Secretary, Ministry of Petroleum & Natural Gas (MoP&NG) was nominated vide MoP&NG letter No. 31033/1/2016-CA/FTS:42979 dated 19.01.2021 as Government Director on the Board of Directors of the Company vice Shri Kashi Nath Jha with immediate effect for a period of three years on co-terminus basis or until further orders whichever is earlier. Shri Kapil Verma (DIN 9056466) aged 44 years was inducted as an Additional Director w.e.f. 06.02.2021, being the date of allotment of DIN, till the conclusion of this Annual General Meeting.

Shri Kapil Verma is an Engineering Graduate (BE in Mechanical Engineering) from Indian Institute of Technology (IIT) Roorkee and belongs to Indian Defence Service of Engineers cadre (IDSE) of Military Engineer Services (2004-batch). Presently Deputy Secretary in MoP&NG, he has served L&T for a year and ONGC for two years. He has served the Army, Navy, Air Force and DRDO, dealing with strategic projects of national importance.

He does not hold any shares in the Company nor does he hold any directorship/membership in the Board of any other Company. He is not related to any Director or other key managerial personnel of the Company.

The Company has received a Notice under section 160 of the Companies Act, 2013, proposing the candidature of Shri Kapil Verma as a Director of the Company.

Your Directors recommend the resolution for his appointment as Director liable to retire by rotation, for approvaloftheshareholders.NoneoftheDirectors,keymanagerialpersonnelortheirrelatives,exceptShri Kashi Nath Jha is interested in this resolution.

Agenda No. 8Pursuant to section 148 and other applicable provisions of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 and as recommended by the Audit Committee of the Board, the Board of Directors of the Company has approved the appointment of M/s Subhadra Dutta & Associates, Cost Accountants (Registration No. 000223) as Cost Auditors to conduct audit of the cost records of the Company forthefinancialyear2021-22foraprofessionalfeeof₹60,500/-(excludingGST).Travellingandoutofpocketexpenseswillbereimbursedatactuals.Accommodationatguesthouseandlocaltravellingwillbeprovided by BCPL.

Thefirmhasvastexperienceincostauditincludingcostauditassignmentsinpublicsectorenterprises.

Pursuant to Rule 14 of the Companies (Audit and Auditors) Rules, 2014 the remuneration of the Cost Auditors recommended by the Audit Committee shall be considered and approved by the Board of Directors andratifiedsubsequentlybytheshareholdersandaccordinglyconsentoftheshareholdersissoughtforratifying the remuneration of the Cost Auditors appointed by the Board of Directors for conduct of cost auditforthefinancialyear2021-22.

Your Directors recommend the resolution for approval of the shareholders. None of the Directors, key managerial personnel or their relatives is concerned /interested in terms of Section 184 of the Companies Act, 2013, in the proposed resolution.

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Dear Shareholder,

It gives me immense pleasure to inform you that your Company has once again operated the plant at more than its name plate capacity on sustained basis i.e. 106% capacity utilization, surpassing the design efficiency benchmarks. This has beenachieved despite a brief setback in performance in the initial periodof the financial year2020-21due to the ongoing pandemic. A major milestone of FY 2021 was the receipt of ₹1,700 crore on31st March, 2021 from the Government of India towards feedstock subsidy claims. Your Company also received an exemption from VAT on NaturalGas from the Government of Assam, for 15 years of plant operation from the date of its commissioning. As the financial performance of your Companydepends largely on its feedstock prices viz. Naphtha and Natural Gas, enablers like these provide considerable relief. During the year, Polymer market has shown consistent demand with buoyant prices; due to this and consistent efforts, the market share of your Company including that in the Northeast region is steadily increasing. Your Company has achievedaturnoverof₹2,449.66croreandearnedanetprofitof₹739.90crore.TheBoardofDirectorsof your Company has recommended a dividend of 15.66% on the paid-up equity share capital,

marking the advent of enhancement of value for the stakeholders.

ThefinancialyearhasbeenfavourableasPolymerprices remained high, providing cost leverage to yourCompany.Thereisasignificantimprovementin liquidity position with the receipt of feedstock subsidy. Plans for part pre-payment of most of the long-term loans are afoot and necessary action has been taken in this regard. The outstanding balances of short term/ working capital loans is at ₹ 286crore.

Despite initial disruption due to the pandemic, your Company has performed remarkably well with the networth increasing to ₹2,811.26 crore from ₹2,073.05 crore in the previous year. CRISIL hasupgraded the credit rating of your Company from AA-/stable to AA-/Positive while Acuite Ratings has upgraded their rating from AA to AA+. Your Company was awarded the prestigious “India’s best company award of the year 2020” among the petrochemical products manufacturing companies by Berkshire Media LLC, USA.

Having received approval of the administrative ministry for investment in a Butene-1 and 2nd Stage Hydrogenation of Pyrolysis Gasoline plant

Chairman’sMessage

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at Dibrugarh, Assam at a project cost of ₹ 386crores, M/s EIL has been appointed as EPCM for the project and the process for selection of licensors is in progress. Environment clearance for both the projects has been received and site enabling works have also commenced. The project will yield value added products and by-products leading to realisation of better margins and wider product slate. Your Company has also initiated actions in consultation with the process licensor towards de-bottlenecking of the plant to enhance the capacity by 27% over the nameplate capacity of Ethylene Cracker Unit (ECU), which would further improve its production capacity and product sales margins.

Health, Safety and Environment has been a focus area for your Company. Safety audits are regularly conducted to ensure implementation of the HSE standards and to check emergency preparedness. Medical surveillance programs are implemented through periodic medical examination at workcentres to monitor the occupational health of employees. Regular training of employees, security personnel, contract workers, tanker & truck drivers and other personnel plays an integral part in ensuring safety of people and premises.

This flagship organisation was conceptualisedfor socio economic development of the Northeast region of the country, and is providing employment to over 600 permanent employees and around 2,600 contractual manpower. It has created opportunities for downstream industries which further generates significantemploymentopportunitiesintheregionfor the vendors, transporters, suppliers etc. In this regard, joint efforts with Government of Assam are underway to make the Plastic Park in Tinsukia more attractive to entrepreneurs. An entrepreneur meet was also organised by your Company in coordination with Government of Assam and other important stakeholders. Despite various challenges, yourCompanyiswellonitswaytofulfilthedreamsof the people of the region.

Your Company has always been socially responsible

towards the developmental initiatives in the surrounding areas. During the year, ₹11.50 crorehas been earmarked for CSR activities for various projects broadly under Health and Nutrition, Promotion of Education, Swachhata and Sanitation, Skill Enhancement & Alternative Livelihood and Sustainable Development & Rural Development. As part of the Swachhata drive your Company strives to maintain a healthy and hygienic environment at workplace and township. In a commendable initiative, the employees of your Company have contributed one day’s salary to the Government of Assam to fight againstCOVID-19.Recognising theimportance of sustainability in ensuring success, various schemes are being implemented to ensure minimum environmental impact.

The management of your Company has been steadfast in its endeavour to comply with the Corporate Governance standards in its true spirit and your Board of Directors is resolute on maintaining transparent business practices with the objective of enhancing stakeholder value. A report on Corporate Governance forms part of the Annual Report.

In recognition of all the efforts, your Company has been a worthy recipient of several awards and accolades in areas of operations, safety, environment, workplace culture and other fronts. It is now important to consolidate efforts to further improve performance and be vigilant to remain relevant and effective in a dynamic business environment.

On behalf of your Company, I extend my sinceregratitude to the Government of India, Government of Assam and the promoter institutions - Oil India Limited, Numaligarh Refinery Limited and GAIL(India) Limited for their continued support in scripting the success story of BCPL. I take this opportunity to solicit the continued guidance of the promoters and stakeholders in helping your organisation to move ahead and fulfil theaspirations of all the stakeholders.

Sd/-

(Manoj Jain) Chairman

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Directors’ Report

Dear Shareholders, On behalf of the Board of Directors, I am pleased to present the Fourteenth Annual Report of the Company containing the audited financialstatements for the year ended 31st March, 2021.

Plant Operations and Status. With the outbreak of COVID-19, hydrocarbon industries across the globe have witnessed shrinkage in margins in recent times. The disruption caused by the ongoing pandemic took a toll on the performance of your Company in the initialperiodofthefinancialyear2020-21.Iampleased to share that despite the setback, your Company has been able to successfully and safely operate the plant on sustained basis at 106% capacity utilization during the year under review, surpassing the design benchmarks.

Your Company has constantly endeavoured to overcome challenges related to feedstock supply affecting capacity utilisation through various alternative measures for procurement of Naphtha, Butene-1 and Propylene and has been successful in ensuring stable and sustained operation of the plant. Joint efforts have resulted in improvement in feedstock supply situation. For further improving the viability of existingoperations by way of additional gas, your Company is in active discussion with natural gas producers available in the region like OIL India Ltd, ONGC, AGCL as well as private players. For supply of gas to the Lakwa plant, your Company is in active discussions with AGCL and has signed an MoU for supply of natural gas from Golaghat to BCPL Lakwa plant. Both the companies have carried out a joint pre-feasibility assessment and the preliminary results appear to be viable

for both. Your Company is also working towards de-bottlenecking of the plant which shall further improve the production capacity and will further increase its market hold and margins. Towards that end your Company has already initiated actions in consultation with the licensor. Your Company is also implementing two projects viz. Butene-1 and 2nd Stage Hydrogenation of Pyrolysis Gasoline (HPG) plants at Dibrugarh atacostof₹386crore,whichwillhelpproducevalue added products and by-products leading to realization of better margins and product slate in the times to come. The Butene-1 plant shall be a 10 KPTA plant producing Butene-1 using ethylene. The plant will provide a consistent supply of Butene-1 reducing dependence on externalsource. The HPG (2nd stage) plant shall be a 52 KTPA plant. Second stage of hydrogenation of HPG will yield more value added product to meet a benzene specification of 1 Vol % (max) andSulphur less than 10 ppm wt, so as to blend in gasoline pool. EIL has been appointed as EPMC for implementation of the projects and licensor selection is in progress. Public hearing for obtaining environment clearances was conducted successfully and environment clearance for both theprojectsisexpectedshortly.

Despite various challenges your Company has been steadily and consistently improving performance generating operating profits fromFY 2017-18 onwards and enhancing capacity utilisation. Since the initial stages of plant operation, various measures have been taken to optimize energy consumption and several schemes undertaken for reduction of losses, emission, blow down, etc. for hydrocarbon & utilities in different process units and utility & offsite facilities. Your Company continuously

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monitors for reduction in fuel and loss, conservation of energy, improvement in yield, optimizationofproductmix.

During the year, 2.85 lakh MT of Polymers and 60,144 MT liquid hydrocarbons were produced and the products were marketed to the downstream industries in accordance with the marketing arrangement with GAIL with Polymer sales of 3.06 lakh MT . It has been your Company’s endeavour to prioritize sales in the northeastern region to ensure there is no dearth of raw materials and to enhance market share in the region.

The highlights of achievements during the financial year 2020- 21 are as below:

• Highest ever Polymer Sale during the month of May 2020: 37093 MT.

• Highest ever HPG Sale during the month of May 2020: 5569 MT .

• First trial of manufacturing Bio-compost Manure within in-house facility successfully completed.

• Signing of of MoU with CSIR-NEIST, Jorhat, Assam an esteemed R&D institute on 18th December, 2020 for R&D Collaboration

• Signing of MoU with AGCL on 19th January, 2021 for supply of rich gas from Golaghat to BCPL Lakwa.

• Accreditation of the BCPL Laboratory in accordance with latest NABL standard (ISO/IEC 17025:2017 valid up to 26th March, 2022)

Awards and accolades : • Recognition by National Safety Council for

commitment towards safety and award of Certificateofappreciation formaintainingasafe and secure environment.

• The prestigious “India’s best company award of the year 2020” among the petrochemical products manufacturing companies from Berkshire Media LLC, USA.

Signing of MoU, CSIR-NEIST, Jorhat

India’s best company award of the year 2020 from Berkshire Media LLC, USA

Shri Reep Hazarika, Managing Director receiving the 19th Green-tech Safety Award.

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• “FICCI Chemicals and Petrochemicals Award 2021” in the category of Most Environment Friendly Company.

• Certification as “Great Place to Work” by Great Place to Work Institute, India which reflects high-trust and high-performanceculture in the company.

• The “7th Annual CSR INDIA 2020 Award” in the category of “Promotion of Health and Healthcare” for its outstanding achievements. The award is recognition of BCPL’s commitment towards socio-economic development of the people residing in its operational areas.

• The prestigious 20th Annual Greentech Environment Award 2020’ in Petrochemical Sector for outstanding achievement in Environment Management in the category of "Environment Protection".

• The “19th Annual Greentech Safety Award 2020”.

• Managing Director, BCPL was conferred with “CEO with HR Orientation Award” at Global HR Excellence Awards Ceremony2021 organized by the World HRD Congress at Mumbai on 16th February 2021.

Health Safety and Environment (HSE)Your Company respects the need for protecting the natural environment and is committed to work to achieve the goals of no accidents, no harm to

people and no damage to the environment, in all itsendeavours.YourCompanyiscertifiedunderIntegrated Management System comprising of ISO 9001, 14001 and OHSAS 18001 standards for Quality, Environment & Occupational health and Safety Management Systems.

A Committee of the Board on Health Safety & Environment monitors the compliance of safety guidelines & statutory requirements and relevant issues are regularly being placed before it. The HSE Best Practices in our Company are primarily driven through the HSE Policy in place which is a statement of commitment of the management of our Company.

Your Company is committed to Environment Protection, Occupational Health, Safety of Plants and Pipelines & Personnel. The HSE Policy has been displayed at various locations in the plant. Employees and contract workers are encouraged to adopt safe working habits and behavior to ensure an effective implementation of the HSE Policy and are empowered to notify and stop any unsafe work/act, as may so arise. Onsite Emergency Plan, Safety Management System etc. are in place.

Training is a key to the safety of people and premises and accordingly regular and structured HSE training including Emergency Management, Fire Fighting, Environment, Health & Safety is imparted to the employees to upgrade their skills, knowledge and competence, in order to perform their HSE functions effectively and develop an effective safety culture. Regular training is also imparted to security personnel, contract workers, tanker & truck drivers and other personnel to create awareness of the probable hazards in their work area so as to avoid and safeguard against unsafe actions or conditions. Monthly Safety Day is observed in all units on the 10th of every month to promote awareness on HSE aspects across the organization and to develop a mindset of safety consciousness at all times.

Your Company has implemented medical surveillance programs through periodic medical Celebration of National Safety Week, 2021.

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examination at work centers to monitor theoccupational health of employees. Safety audits are regularly conducted to ensure the implementation of the HSE Standards, Guidelines and Emergency Preparedness. These audits are performed by both external safetyauditors and experienced in-house auditors.Audit recommendations are being complied ina timeboundmanner.To fulfill the statutoryrequirement as per Assam Factory Rules, 1950, Plant Safety Committee is conducted once in a quarter. Onsite and offsite emergency mock drills are being conducted periodically to check effectiveness of emergency management system. Offsite emergency mock drill was conducted in association with NDRF, district administration, Mutual Aid member group on 18th February, 2021. OISD audit was conducted for all the BCPL units including pipelines and associated installations. In a commendable achievement, Company won the prestigious ‘19th Annual Greentech Safety Award 2020’ in Petrochemical Sector consecutively for the third time. Your Company also received a certificateof appreciation from National Safety Council for maintaining a safe and secure environment.

To increase safety awareness “Best HSE performer award” known as “MD trophy” competition is conducted among all process units. To promote health and hygiene at workplace “Best Housekeeping” competition is also conducted among all process units. The assessment is carried out by a nominated committee approved by the competent authority.

Financial Summary Duringthefinancialyear2020-21,yourCompanyhas earned a net profit of ₹739.90 crore fromRevenue from Operation of ₹2902.62 crore. Asper approved methodology for computation of feedstock subsidy, a claim of ₹1705.35 crorefor the period FY 2015-16 to FY 2018-19 was submitted to MoPNG during FY 2019-20 . The claims were considered and the Government of Indiahasreleasedanamountof₹1700croreon31st March, 2021 against the same. Actual claim forFY2019-20foranamountof₹645.79crore

has also been submitted. The feedstock subsidy forFY2020-21havebeenworkedoutas₹391.78crore and the actual claim shall be submitted after audit of accounts for the year. The feedstock subsidy for the current financial year has beenaccounted for as other operational Income on accrual basis based on the projection/ estimate as per the methodology. During the year, BCPL also received exemption from VAT on naturalgas for 15 years of plant operation from date of commissioning from the Government of Assam.

The ongoing pandemic led to some revenue compression in the initial period of FY 2020-21, however, the situation improved as the normalcy in market conditions returned. Despite COVID-19 related disruptions, the Polymer market has shown consistent demand with buoyant prices and the financial year has been good for yourCompany. The feedstock price remained low during FY 2020-21 providing cost leverage to BCPL. Your Company was fortunate to receive continued support from the Governments at the center as well as the state in the form of various subsidiesandtaxexemptions.

The project work of the new value addition plants viz Butene-1 and 2nd Stage Hydrogenation of Pyrolysis Gasoline (HPG) is progressing and environment clearance is expected shortly. Thetenders for selection of Licensors for both the projects have been floated. OIDB has releaseda loan of ₹96.69 crore during FY 2020-21 forsetting up of the Butene-1 & HPG (2nd stage) plant.

The financial performance of the company in2020-21 as compared to 2019-20 is summarized below:

₹ in crore

Financial performance of the Company

2020-21 2019-20

Revenue from Operation 2902.62 2731.38Other Income 325.24 10.32Total Income 3227.87 2,741.70TotalExpense 1801.06 2162.34EBITDA 1426.81 579.37Less: Interest Cost 235.32 252.43Less: Depreciation 392.68 390.85

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Add: Deferred revenue from Capital Subsidy

211.64 205.95

ProfitBeforeExceptionalItem&Taxes

1010.45 142.04

ExceptionalItem 0 1705.35PBT 1010.45 1847.39TaxExpense-CurrentTax 190.64-DeferredTax 79.91 339.79PAT 739.90 1507.60

With receipt of feedstock subsidy, the liquidity position of the company improved significantlyand the outstanding balances of short term/ working capital loans of ₹ 286crore and theinter-corporate loan of ₹150 crore from GAILwere pre-paid. Your Company is also planning to part pre-pay most of the long term loans and necessary action has been taken in this regard.

During the year, the long pending dispute over the shortfall of gas with s OIL has been resolved mutually by both the companies. Under the dispute resolution plan, both OIL and BCPL have agreed to settle the outstanding amount till 30th June, 2020 on 50:50 basis. The necessary accounting adjustments have been done in the current year.

ThefinancialpositionofyourCompanybyendofthe year under review is as under:

₹ in crore

Financial position of the Company

2020-21 2019-20

NetFixedAsset 6873.18 7,221.00Borrowings (Long Term) -OIDB 893.21 1,010.36 -SBI 1418.48 1,548.36Borrowings (Short Term) -Cash Credit (SBI) 200.23 218.12 -ICICI (WCL) Nil 105.00 -AXIS (WCL) 10.00 100.00Borrowings (Inter-Corporate Loan -GAIL Nil 200.00Paid Up Equity 1417.67 1,417.67Reserves & Surplus 1393.59 655.38Net Worth 2811.26 2,073.05

Key Financial Highlights

The plant has operated at 106% capacity in FY 2020-21. It has been possible to maintain the trend of capacity utilization by using additional naphtha to compensate for short supply of natural gas. Polymer prices have caught an upward trajectorysincebeginningofQ-3ofthefinancialyear and the same sustained for balance part of the year. During the year under review, natural gas worth ₹ 371.03 crore and naphtha worth₹ 605.07 crore was consumed for producingpolymer and by-products which converted to saleof₹2449.66croreafterstockadjustments.

WiththeexemptionofVATonnaturalgasextendedby Government of Assam w.e.f. commissioning date,reimbursementclaimof₹278.50croreforVAT paid for the period since commissioning till 31st March, 2020 has been submitted. The annual benefittowardsVATexemptionshalldependonthe price of natural gas and the same is presently around ₹30-35 crore annually. Your CompanyincurredCapexof₹78.09croreduring theyearout of internal accruals thereby achieving the MoUexcellenttargetof₹40crore.

The operating profit of the company improvedsignificantlyin2020-21ascomparedto2019-20andthesameisreflectedinEBIDTA/turnoverof44.20 % in 2020-21 as against EBIDTA/ Turnover of 21.13 % in 2019 -20.

No material changes and commitments affecting the financial position of the Company haveoccurred since 31st March, 2021 till the date of this report.

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Dividend As per DIPAM guidelines on Capital Restructuring of CPSE dated 27.05.2016, 30% of PAT or 5% of Net Worth, whichever is higher, is payable as dividend for the FY 2020-21. For the previous yearFY2019-20BCPLhadappliedforexemptionfrom payment of dividends and the same was duly considered and forwarded by MoPNG to DIPAM.

The Board of Directors of the Company has recommendedadividendof₹1.56(attherateof15.66%) per equity share on the paid up equity share capital of the Company, for the year ended on 31st March 2021.

Marketing Your Company has established its product brand in the market with growing credibility amongst customers. With GAIL India Limited, the holding company as the sole marketer in accordance with a marketing arrangement, the products & by-products are being sold in the north eastern region and beyond to West Bengal, Jharkhand, Bihar, Uttar Pradesh, Delhi, Orissa, Andhra Pradesh, Telengana, Tamil Nadu to downstream industries with increasing market share. Efforts are on to increase the market share in the northeasternregiontomaximizerealization.

During the year under review a total quantity of 305749 MT of Polymer, 42371 MT of Hydrogenated Pyrolysis Gasoline (HPG), 9586 MT of Carbon Black Feed stock (CBFS), 8645 MT of Wash Oil High Aromatics (WOHA), 271 MT

Componentsoftotalexpense

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of Slop Oil and 796 MT of Liquid Nitrogen was despatched to various locations in the country, generatinga total sales turnoverof ₹ 2449.66crore.

Total 36034 MT material was sold in the northeastregioncateringtothePE(film&roto)andPP(raffia,injection&TQ-film)consumers.

In all, 48 consignment stockists have been

appointed across various locations in the country including the northeast, for marketing your Company’s products which are competitive in terms of quality and price and well accepted in the market. As a matter of fact, appointment of some more consignment stockists including an additional one in Northeast is being planned. Having entered some markets in Thermoforming sector, currently about 70-80 MT Polymer per month is sold in the sector by encouraging the producer to use PP Raffia and PP injection insome quantity.

Your Company’s market share of Polymer in the northeast region is as below:

PPRaffia-90%to95%

PP Injection Moulding - 90%PP TQ Film - 95%LL Film - 80% to 85%LL Roto Moudling - 60% to 70%

The major highlights of marketing activities duringthefinancialyear2020-21 are as below:

• Entrepreneur meet organised in Tinsukia for the promotion of Tinsukia Plastic Park.

• E-Invoice implemented w.e.f 1st October, 2020 with GST Council

• Smooth dispatch of Polymer and LHC material during lockdown imposed due to COVID-19 by following all the COVID protocols.

• Export of 1930 MT of Polymer to Dhaka, Bangladesh.

• Highest Polymer dispatch in the month of May, 2020 - 33558.450 MT

• Highest HPG sales in the month of May, 2020 - 5569.47 MT.

Achievements against MSME targetThe Public Procurement Policy for Micro and Small Enterprises is being implemented in your Company and consistently since FY 2014-15 your Company has been meeting the requisite procurement target from the Government of India MSME sector. Annual procurement order (supplies & services) of the value of 40.12% were issued to MSE vendors in FY 2020-21 against the Government of India target of 25% as per Public Procurement Policy, 2012 as amended w.e.f. 9th November, 2018. 236 MSE vendors were benefitted from your Company during annualprocurement (including supplies & services) made through tendering mode (both manual & e- tendering).

Your Company participated in ten on-line Vendor Development Programs on MSE vendors across various locations in India organized by Central & State Government and leading industry associations. The events were fruitful and

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appreciated by stakeholders towards increasing the participation from local SC/ ST entrepreneurs in tenders. 72 start-ups have participated in different tenders for procurement of goods and services, out of which 12 were awarded during the financial year. Additionally, entrepreneursweretaught about Udyam registration [applicable w.e.f 1st April, 2021] and ways to utilize the portals like MSME Sambandh, MSME Samadhaan, and MSME Samveg etc. Your Company has also started procuring items/goods through GeM portal.

The conservation of energy, technology absorption, foreign exchange earnings and outgo:

(A) Conservation of energy-

i.

The steps taken or impact on conservation of energy

There is regular recording and monitoring of Flare, Fuel, Power, Steam, Nitrogen & other utilities consumption with respect to own benchmark & design values. Periodic in-house energy audit is also carried out.Your company is strictly adhering the guidelines of Bureau of Energy Efficiency(BEE)forenergy management under Perform, Achieve, Trade (PAT) scheme.

ii.

The steps taken by the Company for utilising alternate sources of energy

iii.

The capital investment on energy conservation equipment

(B)Technology absorption-

i. The efforts made towards technology absorption.

Plant operations are sustained, quality products are produced and average capacity utilisation of 106% has been achieved during the financialyear.

ii.

Thebenefitsderived like product improvement, cost reduction, product development or import substitution

iii In case of imported technology (imported during the last three years reckoned from the beginning of the financialyear)a. The details of technology importedThe Company has entered into contracts with the following Licensors for import of technology for its different units:UNIT(i) Ethylene Cracker Unit -(ii) LLDPE / HDPE Swing Unit -(iii) Polypropylene Unit -

LICENSORLummus Technology, USA INEOS, UK

Lummus Novolen, Germany

No new technologies have been imported during the year.b. the year of import(i) ECU – License Agreement signed on

14.05.2009.(ii) LLDPE/HDPE – License Agreement signed

on 18.03.2009. (iii) PPU – Licence Agreement signed on

31.03.2009.No new technology has been imported during the year.c. Whether the technology has been fully absorbed Technologies adopted

are largely absorbed as more than 100% capacity utilisation has been achieved.

d. If not fully absorbed, areas where absorption has not taken place, and the reasons thereof

iv Theexpenditureincurred on Research and Development NIL.

(C) Foreign exchange earnings and outgo-

During the year, foreign exchange earned was₹13.51 crore towards export of polymers toBangladesh.Thetotalvalueofforexoutgoduring

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theyearis₹74.34croreandtheimportsusedinconsumption is ₹70.59 crore after consideringopening stock.

Particulars of EmployeesBeing a Government Company, the provisions of section 197 of the Companies Act, 2013 shall not apply in view of the gazette notificationdated 5th June, 2015 issued by the Ministry of Corporate affairs, Government of India. Therefore particulars of employees drawing remuneration in excess of specified limits as envisaged bysection 197 of the Act read with the relevant rules are not included in the Board’s Report.

Human Resource:

Manpower

The total sanctioned manpower in your Company is 700 (491 executives + 209 non-executives)and the employee strength on 31st March, 2021 was630including438executivesand192non-executives (including 02 lien posts). Further,11 executives were on secondment/deputationfrom GAIL (India) Limited, the major equity holder. 65.87% of the employees were from the north-eastern region. The remaining manpower will be recruited based on need and care is being taken to ensure suitable representation of female employees and minorities. Further, representation of the OBC, SC and ST categories constitute 29.36%, 13.81% and 8.41%. of the employees respectively. Special recruitment

drives have been carried out for recruitment of persons with disability to ensure proper representation in this regard.

Training

Your Company promotes employees to help them acquire new skills, sharpen existing onesto perform better and increase productivity. Training is provided in technical as well as non-technical domains so that the employees can cope with the changing industry standards and prepare themselves for higher responsibilities.

In the year under review training, both internal as well as external through webinar, covering919man days was organized including on fireand safety covering 1009 participants.

Initiatives

Your Company introduced the Communication Matrix so that various issues of the employeescan be properly addressed and timely action can be taken to improve employee productivity and plant performance. The matrix has beenimplemented with an objective to facilitate and provide a platform to employees, association, unions and contractual workers to raise their issues of concern before the management/senior leaders. Every quarter open forums i.e HR open forum, Services Customer meet and O&M meet were conducted wherein employees had the opportunity to interact about their work environment, systems and processes and other aspects of the workplace for improvement of the same.

Workshop on stress managementFirst training session of BCPL Learning Centre

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The practice of Professional Circle was introduced in HR Department with the idea of stimulating professional growth of executivesthrough knowledge sharing and leveraging of efforts towards meeting business challenges. This concept is expected to be gradually introducedacross the organisation.

The first Public Relations Symposium wasorganised in the year under review in association with Public Relations Society of India (PRSI), Guwahati Chapter under Chairmanship of the Managing Director, BCPL on the theme Challenges of PR professionals in NE Region. Public Relations and Corporate Communication professionals from various PSUs and corporates joined the event which was held virtually.

In order to build a cordial relation with the internal public i.e. the employees, there are various communication tools including the E-Newsletter which is published on a bimonthly basis. The Chief of the company also communicates/greets the employees on every occasion and the same is published by the CC Department.

Moreover social media has a very important role to play in today’s business scenario. BCPL has two official social media handles in Facebookand Twitter. Moreover it builds a bond with the organisation’s customers which is very crucial for long term success in the petrochemical business.

Your Company continued its efforts towards

greateruseofHindiinofficialworkduring2020-21 and has taken the initiative to organize a Hindi seminar annually for Town Official LanguageImplementation Committee (TOLIC) members. On the occasion of Vishwa Hindi Diwas, the third seminar was held on 12th February, 2021 through online mode in which officials from variousCentral Government organizations participated. The second batch of employees have performed verywell in theHindiexaminationsheld in themonth of November, 2020 under Hindi Teaching Scheme, Ministry of Home Affairs, Government of India. In order to encourage the use of Hindi in officialworkamongstofficers/employeesofthecompany, a Hindi fortnight was organized from 14th September to 28th September, 2020. During the fortnight Hindi special e-magazine BCPL Rajbhasha Darpan was released. During the year, various Hindi competitions were organized for employees, TOLIC members as well as school and college students. Your Company is continuing the BCPL Rajbhasha Shield to promote Hindi language amongst the TOLICmember offices situated inDibrugarh. To promote official language andto motivate the Hindi major students a career counselling seminar was organized for the college students on 9th February, 2020. Every quarter a Hindi workshop was organized for the employees of BCPL as well as TOLIC members on different topics. Your Company published the second issue of its TOLIC Hindi Magazine Rajbhasha Darpan on

Inauguration of 1st House Journal by Shri Reep Hazarika, Managing Director in the presence of Shri P R Dash, Director (Finance) and other

senior officials during the 14th Foundation Day

Presentation during Professional Circle

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24thDecember,2020.TheDepartmentofOfficialLanguage, Ministry of Home Affairs, Government of India has awarded the Third prize in “C” region forexcellentworkinenhancingimplementationofHindiasOfficialLanguagefortheyear2019-20 to Town Official Language ImplementationCommittee(TOLIC)(offices),Dibrugarh.

Policy

During the year under review, your Company has taken various new initiatives, revised policies to motivate the employees and ensured an environment of mutual cooperation and shared responsibility between the management and employees. New online portal was implemented for employee’s personal claims.

During the year your Company enhanced the stipend of non-executive trainees, alsoimplemented two additional increments to the payscaleofnon-executivesw.e.f31st December, 2016. Coverage under Group Personal Accident Insurance Scheme and financial assistance incase of death/ total permanent disablement was enhanced.

Reimbursement of expenses incurred forpurchasing mobile handset for employees was also enhanced.

There is awell-definedwhistleblowerpolicy toprovide an opportunity to employees to raise concerns on any unethical and improper practice or any other wrongful conduct in the company.

Township

At present more than 600 residents stay in various types of family quarters including A, B, C and D Type as well as in two Bachelors Hostels inside BCPL Township, Barbaruah situated amidst lush and green tea gardens. The 2nd phase of quarter construction is in progress where 36 numbers of A-type quarters and 36 numbers of C-Type quarters will be handed over for accommodating residents at BCPL Township, Barbaruah.

Approximately 100 people including familymembers and employees are residing at various types of family quarters and Bachelors Hostel in Sivasagar Township, which is about 40 kms from the Lakwa Plant.

Presently there is no Township at Duliajan for accommodation of families and employees, but the matter is under consideration.

Staff Welfare Committee

In order to promote various Sports and Cultural activities for the employees and family members, the Staff Welfare Committee (SWC) organized several competitions and programmes to generateanatmosphereoffreshness,relaxationand comfort in these trying times of the pandemic.

Supplementing the efforts of the management, theStaffWelfareCommitteewenttheextramileto lift the morale of every individual in the BCPL fraternitybyorganizingthefirsteverSportsandCultural week 2021 (FESTIVISTA – 2021) in the month of February, 2021. The event showcased

First O & M Symposium Execution of BCPL Employees Superannuation Benefit Fund Trust Deed

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the latent potential and skills of the employees and their family members in varied activities including floriculture, singing, dance, drama,fashion&modellingandtrack&field.Dr.BhupenHazarika Shradhanjali programme, Magh Bihu & Holi celebrations, BCPL franchisee night cricket, Children, Ladies & Veteran’s cricket were also held amidst the pandemic adhering to all COVID protocols.

To inculcate a love for music and encourage interest, the SWC has been conducting music classes in Keyboard, Guitar & Tabla, maintaining allextantCOVIDprotocols.

Sexual Harassment of Women at WorkplaceYour Company has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment ofWomen at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and a Policy with regard toprevention,prohibitionandredressalofsexualharassment of women at work place is in place.

One complaint was received during the year, which was settled through conciliation. The Committee submitted the report/order confirming conciliation to the managementwithinthetimelimit.Sincetherewasnospecificrecommendation for any punitive action, the need for taking action by the management did not arise.

Industrial Relations There is a constant endeavour to create a conducive working environment in the plant by ensuring cordial industrial relations which is the key to increased productivity in industrial establishments.

Your Company maintained cordial industrial relations throughout the year and adopted a consultative approach with the collectives, establishing a harmonious relationship for industrial peace thereby leading to higher productivity. Adoption of pre-emptive and responsive IR policies resulted in a salutary effect on all statutory liabilities towards various social security schemes. Regular meetings are held with the representatives of the various Associations/ Unions to sort out the local issues as well as policy related matters and as a result of timely action there was zero loss of man days during the year under review.

Meetings of the Board and changes in the Board of Directors & key managerial personnelDuringtheyearunderreview,fivemeetingsoftheBoard of Directors were held and the following changes occurred in the Board of Directors and key managerial personnel:

i. Dr Ashutosh Karnatak, then Director (Project), GAIL ceased to be a Director w.e.f. 21.05.2020.

ii. Shri M V Ravi Someswarudu, ExecutiveDirector (PC-OM), GAIL India Ltd and

A glimpse of FESTIVISTA 2021 organised by the Staff Welfare Committee

International Yoga Day observed from home

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presently also CEO, GAIL Gas Ltd was appointed as Director w.e.f. 22.05.2020.

iii. Shri Kashi Nath Jha, Joint Secretary to the Government of India, Ministry of Chemicals & Fertilizers ceased to be a Director w.e.f 19.01.2021.

iv. Shri Kapil Verma, Deputy Secretary to the Government of India, Ministry of Petroleum and Natural Gas was appointed as Government Director w.e.f. 06.02.2021.

Details of composition and meetings of the Board including attendance have been provided in the Corporate Governance Report forming part of this report.

Corporate Social Responsibility Since the project implementation phase, your Company has contributed to society through its CSR initiatives in the areas of healthcare, hygiene, education, infrastructure development & environment,literacyenhancementtotheextentpossible. Subsequently, not having generated any net profit, your Company was unable totake up substantial CSR projects. Nevertheless your Company has continually been involved in community & health activities and development of nearby areas which bear testimony to its commitment to society even in the face of various challenges and liquidity issues. Having now entered the profit regime, a budget of ₹11.50crore has been approved for CSR activities for the financial year 2020-21 with variousprojects under the broad heads of Health and Nutrition, Promotion of Education, Swachhata and Sanitation, Skill enhancement & alternative livelihood and Sustainable Development and RuralDevelopment.Someoftheflagshipprojectsundertaken under BCPL CSR for the financialyear 2020-21 are upgradation of infrastructure & addition of facilities including equipment and introduction of specialist medical treatment at Barbaruah Public Health Centre, upgradation of infrastructure & training facility at Emergency Care Department at AMCH, Skill Enhancement

& Entrepreneur Development program at ITI, Barbaruah, initiatives towards pure drinking water facility at all the high/higher secondary schools under Barbaruah Panchayat etc. BCPL has complied with the all relevant guidelines on CSR issued by the government in the recent past. The projects are being monitored and implemented through a CSR Coordination Team. A dedicated CSR Team is being developed for the coming years. All relevant guidelines on CSR are being complied with.

Initiatives under the aegis of Swachh Bharat Abhiyan

Your Company is keen to maintain a healthy and hygienic workplace and Township premises. In view of the pandemic situation, PPE kits were distributed to housekeeping workers at plant. In order to emphasize the dream of the Hon'ble Prime Minister of India, "Swachhta Pakhwada" was organized under the aegis of Swachh Bharat Abhiyan. As part of the Swachhta drive, various activities were organized for employees, family members and contract workers to promote awareness on the importance of hygiene. A message was also aired in All India Radio to educate the general masses. In addition to this, cleanliness drives are being undertaken on regular intervals to ensure safe and healthy work environment.

COVID Management Your Company is adhering to all the COVID protocols being issued by different authorities from time to time while operating the plant. Thermal scanners are used at all entry points and works places are being sanitized on regular intervals. Sanitization units are in place in all the workstations and contactless biometric attendance has also been implemented. Employees are continuously instructed about the necessity for usage of mask, hand sanitizers and

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frequent hand washing and testing after travel as well as responsible behavior by exposed/symptomatic employees. Majority of the training programmes and meetings including Board and annual general meeting were organized virtually to ensure safe and secure work environment. Your Company has provided assistance for testing of persons with symptoms, facilitated quarantine in the township guesthouse and is presently also making arrangements to facilitate vaccination of employees with the help of District Authority. Your Company has also made some changes in the work-schedule of its employees /contract workers through which gathering at workplace could avoided to minimize risk of infection of the virus.

Sustainable Development Your Company recognizes that sustainability is today integral to corporate success which is definedbyawiderrangeofmeasuresbeyondthefinancial, embracing social, environmental andethical impacts. It has thus been consistent in its

efforts to achieve a better and more sustainable future for all and is implementing various schemes to ensure minimum environmental impact.

Sensitive to the impact on environment, your Company has taken appreciable steps in all respects, whether it is air, water, noise or soil pollution or waste management. Pollution control and other environment protection norms are being fully complied with and there has been an endeavour to maintain high levels of precaution and environmental standards along withoperationalefficiency.YourCompanyisfullycommitted to conform to ambient air qualities as well as point source emission qualities as per the standards of Central Pollution Control Board and the State Pollution Control Board. With respect to water conservation and management, the effluentgeneratedinplantsarebeingmaintainedwellwithinthespecificationsasprescribedbythePollution Control Board authorities. With an aim to reduce fresh water intake, a chemical treatment facilityforreuseoftreatedeffluentwaterpartly

Contribution of employees for COVID- 19 handed over to Shri Sarbananda Sonowal, Hon’ble Chief Minister, Assam by Shri Reep

Hazarika, Managing and other officials

Distribution of PPE kits in Sibsagar

Inauguration of the Bio Compost facility by Shri Reep Hazarika, Managing Director

Shri Y Suryanarayana, IFS, Chairman and Dr. D N Das, Member Secretary, Pollution Control Board, Assam during a plant visit

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infirewaternetworkandhorticulturehasbeeninstalled.

Your Company follows a holistic approach of reducing generation of waste as a part of its responsibility towards environment and to manage its waste in the best possible ways. Utmost care is given for segregation of different wastes, their storage, treatment and disposal as per the latest environment practices. Co-processingofhighcalorificvaluewastesasfuelincement industries is done successfully. E-waste, battery waste have also been dispatched to authorized recyclers. Bio-medical wastes are being managed by sending it to the authorized medical centre. Liquid hazardous wastes like used, waste oil etc. are being sent for recycling through M/s MSTC. Oily sludge is being treated and converted into soil through Bio-remediation facilityateffluent treatmentplant.Solidwasteshave been disposed to authorized recyclers for re-use.

Further, a bio-compost facility has been developed to treat the domestic organic waste at BCPL Township, which converts the waste into bio-fertilizer and the manure is being used in horticulture.

Being an ISO 14001:2015 Company, BCPL is committed towards operational excellenceto improve environmental performance in all

respects, adhering to all statutory compliances of MoEFCC, Central Pollution Control Board, and State Pollution Control Board, Assam etc. The Environment Team is actively interacting with other leading companies to share best practices to construct a framework for sustainable development of our organization.

Further, the employees have attended various training programs on environment, sustainable development and also participated in an International Conference on virtual mode considering the pandemic COVID 19 situation. Keen to promote environment conservation, various awareness activities and plantation drives in and around the plant areas are carried out on regular basis following the Government guidelines and COVID 19 protocols.

Vigil MechanismThe Company has a Whistle Blower Policy whereby employees can raise concerns to the competent authority in case they observe unethical and improper practices or any other wrongful conduct in the Company. The policy provides direct access to the Chairman, Audit Committee and necessary safeguards for protection of the whistle blower from reprisals or victimization.

Padma Shri Dr. Jadav Payeng, the Forest Man of India planting a sampling and interacting with school students, employees & family members in Dibrugarh on 28th January , 2021

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Right to Information Act, 2005 Your Company adheres to Government instructions issued in pursuance of the Right to Information Act, 2005, and has designated a Central Public Information Officer and FirstAppellate Authority under the Act. A total of 14 RTIquerieswere receivedduring the financialyear 2020-21. Replies to all the queries were duly sent as per the provisions of the Act.

Statutory Auditors’ Report M/s R K P Associates, Chartered Accountants, Silchar was appointed by the Comptroller and Auditor General of India as Statutory Auditors of your Company for the year under review and theirreportisannexedhereto.

Comments of Comptroller & Auditor General (C&AG) of IndiaThe Comptroller & Auditor General of India has undertaken supplementary audit on the accounts of the Company for the year ended 31st March, 2020 under Section 143 (5) of the Companies Act, 2013. The comments of the C&AG on the annual accounts of your Company for the year underreviewarealsoannexedhereto.

Cost Audit The Company is required to maintain cost records as specified by the Central Government undersub-section (1) of section 148 of the Companies Act, 2013 and accordingly such accounts and records are made and maintained.

Secretarial Audit Report CS Ujwal Kumar Kalita, Practising Company Secretary was appointed as the Secretarial Auditor of your Company for the year under reviewandthereportalongwithexplanationofthe Board to the observations therein pursuant to the provisions of Section 134 (3) (f) of the CompaniesAct,2013,isannexedhereto.

All applicable secretarial standards have been

complied with by the Company during the year.

Management Discussion & Analysis A Management Discussion & Analysis Report as stipulated in the DPE Guidelines on Corporate Governance for CPSEs forms part of the Annual Report.

Corporate Governance A separate section on Corporate Governance forming part of the Directors’ Report and a certificatefromaPractisingCompanySecretaryconfirmingcomplianceofCorporateGovernancenorms as stipulated in the DPE Guidelines on Corporate Governance for CPSEs is included in the Annual Report.

Adequacy of internal financial controls with reference to the Financial StatementYour Company has maintained adequate financial control system, commensurate withthe size, scale and complexity of its operationsand ensures compliance with various policies, practices and statutes in keeping with the organization’s pace of growth and increasing complexityofoperations.Dueattentionhasbeengiven since the beginning to ensure sufficientinternal controls for safeguarding the assets of your Company and there has been reliable financial reporting, timely feedback on theachievement of targets and compliance with applicable laws and regulations. Your Company has been gradually introducing its own systems, policies and procedures and in areas in which this is yet not achieved, those of its holding company are being followed. A new comprehensive enterprise risk management policy has been recently adopted and the risk organogram has been activated. Quarterly internal audit is being conducted by the Internal Auditors, M/s Batliboi & Purohit, Chartered Accountants, Mumbai. The progress and activities of your Company is being continuously monitored and reviewed at all levels

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including the holding company, GAIL, the State and Central Government authorities. M/s Batliboi & Purohit, Chartered Accountants, Mumbai has alsoevaluatedtheefficacyoftheInternalControlSystem on Financial Reporting and found the systems in place to their satisfaction. Further, an externalagencyisalsoreviewingtheIFCinBCPLand their recommendations shall be discussed and adopted suitably.During the financial year,Internal Management Audit Committee (IMAC) has been constituted by the Audit Committee to have micro level reviews of the systems and processes in the company.

Audit and other Committees of the Board Details as to composition, meetings and attendance of the Committees of the Board including the Audit Committee and the Nomination & Remuneration Committee are provided in the Corporate Governance Report forming part of this report.

Responsibility Statement of the Board of DirectorsAs required by Section 134 (3) (c) & 134(5) of the Companies Act, 2013 your Directors to the best oftheirknowledgeandexplanationaffirmthat:

i. In the preparation of the annual accounts, the applicable accounting standards had beenfollowedalongwithproperexplanationrelating to material departures;

ii. The Directors had selected such accounting policies and applied them consistently except changes as per the Companies Act,2013 (Ref. Note No. 1 to Balance Sheet on “Significant Accounting Policies”) andmade judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the CompanyattheendofthefinancialyearandoftheprofitandlossoftheCompanyforthatperiod;

iii. TheDirectorshadtakenproperandsufficientcare for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv. The Directors had prepared the annual accounts on a going concern basis; and

v. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Statement on Declaration of Independence by Independent DirectorsTheIndependentDirectordulyaffirmedmeetingthe criteria of independence specified underSection 149(6) of the Companies Act, 2013, for the year 2020-21.

Particulars of contracts or arrangements with related parties As required, the particulars of contracts or arrangements with related parties pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is annexedheretointhespecifiedformat.

Extract of the Annual Return The Annual Return of your Company will be available on the Company’s website at https://www.bcplonline.co.in/Footer/download within 60 days of the annual general meeting.

Particulars of loans, guarantees or investments under section 186The Company has not given any loan /provided any guarantee or security in connection with a loan to any person or other body corporate and acquired by way of subscription, purchase

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Sd/-Dated : 11th August, 2021 (Manoj Jain)Place: New Delhi Chairman

or otherwise, the securities of any other body corporate during the year under review.

However, GAIL vide Deed of amendment dated 08.05.2020 reduced the unconditional and unequivocal corporate guarantee from ₹ 250croreto₹100croretoOIDBintheeventofBCPLbeingunabletofulfillitsobligationforrepaymentof loan outstanding and interest accrued thereon. BCPL has accordingly, amended the Counter GuaranteetoGAILfrom₹250croreto₹100crorevide Counter Guarantee deed dated 01.10.2020.

Risk Management Policy The Risk Management Policy in your Company for identification, evaluation and mitigation ofrisks was framed in the project implementation phase and was rudimentary providing the basic framework. A comprehensive enterprise risk management policy has recently been adopted with five components of enterpriserisk management framework viz. governance, strategy, performance, review and communication which are supported by a set of principles. These principles cover everything from governance to monitoring. A risk management organogram would render the support necessary for achieving the risk objectives.

As a part of risk mitigation/reduction during operational stage, a Comprehensive Mega Operational insurance scheme has been taken covering – (i) Property damage with machinery breakdown (ii) Business interruption cover, loss due to fire & machinery breakdown and (iii)

Terrorism risk for material damage with business interruption. Further, review of internal controls by Internal Audit has been a support for the management in the risk management process.

Your Company has activated the risk organogram andunit levelriskownershavebeenidentified.The unit level risk owners are reporting to the ChiefRiskOfficer.Formonitoringtheenterpriserisk management, an in-house application has been developed and hosted in your Company’s intranet. The key risks are closely monitored by the Risk Management Committee.

Acknowledgement Your Directors gratefully acknowledge the support and guidance from the Ministry of Petroleum and Natural Gas, Ministry of Chemicals and Fertilizers and the Ministry of Environment and Forests. Your Directors are grateful to the promoters, GAIL, OIL, NRL and Government of Assam and to the lenders, Oil Industry Development Board and State Bank of India for their continued assistance and support. Your Directors acknowledge the cooperation of the entire team of process licensors, the bankers, consultants, suppliers and other intermediaries. Your Directors also acknowledge with gratitude thesupportandadviceextendedbytheInternalAuditors, the Statutory Auditors, the Secretarial Auditors, the Cost Auditors and the officialsof the Comptroller & Auditor General of India. Your Directors appreciate the contribution of the employees in taking your Company forward duringthedifficulttimeoftheongoingpandemic.

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Industry Structure and DevelopmentsThe chemical industry employing over two million people and encompassing bulk chemicals, specialty chemicals, Agrochemicals, Petrochemicals and Polymers is an integral part of the Indian industry that has seen significantdiversification with over eighty thousandcommercial products meeting essential needs and enhancing the quality of life. Providing building blocks for several downstream industries in diverse fields including textiles,papers, paints, varnishes, soaps, detergents and pharmaceuticals, the industry forms the pillar of industrial and agricultural development in the country. Except for a few hazardous chemicals,the industry in India has been de-licensed and proximitytotheMiddleEast,therichestsourceofpetrochemicals feedstock, makes for economies of scale.

A major constituent of the Chemical industry, Petrochemicals which is a downstream hydrocarbon derived from crude oil and natural gas and comprising of Plastics and a plethora of other chemicals, plays a vital role in meeting basic needs and improving quality of life. With immense potential for value addition they cater to the need for a huge range of products of day to dayusesuchastextilesandclothing,agriculture,packaging, infrastructure, healthcare, furniture, automobiles, information technology, power, electronics and telecommunication, irrigation, drinking water, construction and a host of other articles of daily and specialized usage in other emerging areas, its consumption permeating all conceivable areas of the economy. Demand for Plastics, the most used Petrochemical has overtaken other bulk materials like steel, aluminum and cement. Indigenous feedstock supply is however a challenge and feedstock cost is the single largest cost component in the production of Petrochemicals, estimated at 40-60% of total cost.

Management Discussion and Analysis Report

The United States of America and Western Europe have the largest petrochemical industry at present with Asia and the Middle East expectedtocatchupinthelongrunduetomajorgrowth in new production capacity and demand. The Middle East and the United States have a feedstock advantage in their access to low-cost ethane owing to abundant natural gas supplies.

Over the last 5 years, India has grown from 7th largest to 6th largest player in the chemical business. The Indian Chemical sector continues to grow at 1.2 to 1.5 times the GDP. As demand surpasses supply, imports continue to grow substantially. At present 30% of India’s needs are met by imports. Going forward as India grows from the current $160 billion to $300 billion, the gap between demand and supply will only go up. This gap more often creates large enough size to support world scale capacities for various products. Also, it has been the experience thatthe demand grows much faster with easy local availability. Thus, even for products where demand has not yet grown to support world scaleplants,puttingsuchplantsandexportingsurplus for a short period will increase demand growth rates as local availability cases. Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks will provide state-of-the-art infrastructure for Chemicals and Petrochemicals sector. The enterprising initiatives and schemes of Government such as Make in India, Aatmanirbhar

Source : Annual Report 2020-21, DCPC

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Bharat Abhiyan provide the roadmap for competitiveness of domestic manufacturing.

Thereare11crackercomplexes inoperation inthe country with a combined annual Ethylene capacity of 7.05 million tonnes per annum. The production of polymers accounts for around 72% of the total production of basic major petrochemicals for the year 2020-21 (up to September 2020). The production of basic major petrochemicals in 2020-21 (upto September 2020) was 7,739 thousand MT. The CAGR in production of major petrochemicals during the period 2015-16 to 2019-20 is 6.31%.

The Indian petroleum industry’s downward integration into petrochemicals, driven by the developments around alternative fuels is a potential game changer. This shall expandthe availability of feedstock and intermediate products for polymer industries.

In the domestic Polymer scenario, non-integrated players including GAIL, PATA, OPAL, HPL and your Company are present in production of PP &HDPE,LLDPE.Therestarerefineryintegratedplants, public sector oil refining companieswhich sell their petroleum feedstock to other companies, which have been adding value, and converting the same to useful petrochemical products. Presently RIL, IOCL, HPL and GAIL are the major players in the domestic petrochemical industry

Commonly used Polymers include Polypropylene (PP), Poly vinyl chloride (PVC), Polystyrene (PS), Polyethylene (PE) and Acrylonitrile Butadiene Styrene (ABS). PE again is of three types - high density polyethylene (HDPE), low-density polyethylene (LDPE), linear low density polyethylene (LLDPE). PP has been the fastest growing Polymer. The primary products of the Company, PP, LLDPE and HDPE are essentially used in the manufacture of plastic products.

Besides the regular drivers, the growth in global packaging market due to increased demand for FMCG and pharmaceutical packaging and rising

E Commerce sales since the onset of the Covid -19 pandemic and lockdown, has been a major growth driver that has sustained the demand for chemical and petrochemical products through the rough times. Polymers proved their resilience, worth and value during the pandemic. A high consumption of packaging products is being witnessed due to increased demand for healthcare and hygiene products like vials, atomizers, syringes and cartridges. Increasing government investments in manufacturing PPE kits has given the Indian Polypropylene market a tremendous boost. Sales in automobile industry a major consumer of PP impact copolymer and Plastics, have begun to improve from July 2020, after reports of reaching almost zero during the full-fledged lockdown enforced as a result ofthe coronavirus pandemic in March-June, 2020. One of the major drivers for this demand revival is the apprehension of using public transport during the pandemic. It is reported that job losses in the Polymer industry were relatively lower compared with many other industries in the country (Source: ICIS). With an estimated per capita consumption of only 11kg for Polymers as compared to the world average of 28 kg, the potential for Polymers is immense particularly in view of the sudden spurt in consumption brought on by the pandemic.

Strengths and Weaknesses Surpassing the design benchmarks the plant was operatingduringthefiscalwithaveragecapacityof 106% employing over 600 permanent employees and around 2600 additional manpower under contract. A substantial part of the human resource comprises of young, tech savvy and vibrant employees who have contributed to the growth of the organization with their verve and involvement, adapting easily to the ever changing dynamics of process, technology and other priorities. The plant has upped employment prospects and created opportunities for not only investment in downstream industries but also for vendors,

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which has an established marketing network.

Location of the plant in the far northeast coupled with inadequate infrastructure and connectivity has from the start been a constraint both for marketing of products and recruitment and retention of manpower. In the absence of adequate market in the region, realization from sale in distant markets has been lower due to the freight disadvantage. However, with new employee incentives and improvement in communication, the manpower situation is far improved. Constant endeavour is made to prioritize sales in the northeast which has borne fruit for, in a heartening development, the number of plastic processing units in the north eastern region has increased from 158 in 2014 to 235 in 2020 with a promise of growing market potential.Takingadvantageofitsproximity,yourCompanyisexportingPolymertoneighbouringBangladeshandisexploringexportpotentialinother members of ASEAN.

Plastics as a product is hard to do without considering its cost and durability and its use can be seen in a magnitude of articles of personal as well as commercial use. The growing trend of replacing wood with plastics, particularly in the furniture and construction sectors due to easy availability of raw material bodes well for conservation of the fast depleting forest reserves of the north-eastern region.

Opportunities and Threats The administrative control of your Company has shifted in the last fiscal from the Ministryof Chemicals and Fertilizers to the Ministry of Petroleum and Natural Gas (MoP&NG) as per approval of CCEA vide OM No. 45012/10/2014-PC-I (FTS:6169) dated 01.01.2020. This shift is a positive change bringing better synergy with the promoter organisations- viz. GAIL, OIL and NRL, all of which are under the umbrella of the MoP&NG.

As the world’s third largest Polymer consumer, Polymers in India account for approximately

transporters, suppliers and other service providers. Efforts are continuously being made in sync with the government both at the centre and the state, to make the plastic park in Tinsukia more attractive to investors and additional discount has been offered to entrepreneurs willing to set up downstream plastic units in the park.

The brand image of your Company is excellent with its products having gainedwide acceptability as quality Polymers. It is commendable that your Company has been able to gain a reputation as major player in the petrochemical sector in the country over a remarkably short period. Overcoming Covid related disruptions, your Company witnessed a salesfigureof3,05,749MTduringthefinancialyear under review

Feedstock, the biggest contributor to cost of production has been a constraint from the initial stages with constant efforts being made for resolution through various alternative measures for procurement of Naphtha, Butene-1 and Propylene which have helped ensure stable and sustained operation of the plant. Other challenges include high fixed costwhich is common to all petrochemical plants coupled with sub-optimal capacity of the plant. With the recent approval of feedstock subsidy bytheGovernmentofIndiaandreleaseoffirstinstallment of ₹ 1700 crore, considerable relief isexpectedon this frontandrequesthasbeenmade for early release of full claim.

The strong backing of the promoters having formidable reputation and experience in theindustry has undoubtedly been your Company’s biggest strength. Contributing equity and supplementingexpertiseandtrainedmanpowersince the early stages, much of the success of the gas cracker project is owed to the combined benefaction of the promoters. Additionally, 100% evacuation of the products and by-products is being ensured through an agreement with the holding company, GAIL (India) Ltd.

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72% of total production of basic major petrochemicals. With existing low levels ofper capita consumption of Plastic estimated at 11 kg, the potential for growth in India is huge. The majority of Indian petrochemical companies hasevolved frompetroleumrefinerieswith theintention of achieving higher realisation. Despite the environmental concerns on the use of Plastic, there is no denying the fact that a close substitute in an ever growing range of products would be difficult to come by in terms of durability andcost.Bothrefineriesanddomesticpetrochemicalplayers are expanding their petrochemicalcapacities. Given the strong underlying demand trends, India’spetrochemical sector isexpectedtowitnessasignificantinvestmentboom,withanumber of multibillion-dollar capital investments either already being implemented or expectedwithin the next five years. Furthermore, withrecent revisions in the basic customs duties of naphtha and petrochemicals, further traction in investmentsisexpectedinthecomingyears.

Oddly enough, after the initial setback, the Covid -19 pandemic has given an impetus to the Polymer industry with rising demand for packaging material for healthcare products and E Commerce especially for FMGC goods. With the pandemic, due to the importance of Plastic, opinions and laws on the use of this material changed globally and some existing laws weresuspended. Demand has gone up due to increased use of vials, syringes, atomisers and other medical/sanitation products. The importance of Plastic in the manufacture of hospital devices, respirators, Covid tests and personal protective equipment (PPE) is undeniable as they contribute to the reduction of the virus spread, helping health systems globally in saving lives. However, the same material that is a protector becomes a contaminator due to indiscriminate disposal, polluting the environment and water bodies, the danger being greater as they carry traces of the pathogen. Governments the world over therefore need to address this issue and in the post-pandemic scenario, paradigm shifts in waste

management should be one of the priority issues. In what could be a significant setback for thePolymer industry, the Government of India has proposed to ban the manufacture, use, sale, import and handling of some single-use plastic items on a pan India basis in view of high environmental costs associated with management of single-use plastics, particularly the adverse effect on the marine environment. The Environment Ministry has in March, 2021 unveiled a set of draft rules that propose to ban several categories of single-use plastic items in keeping with the Hon’ble Prime Minister’s announcement in 2019 on phasing out single-use plastic by 2022. The draft Plastic Waste Management (Amendment) Rules, 2021 is proposed to be implemented in three stages starting this year and culminating in mid- 2022. With increasing concerns over sustainable environment, there is a shift towards using sustainable polymers. Generating awareness on developments in the fieldofbiodegradable andphotodegradable plastic resulting in improved product quality with reduced adverse effect on environment has therefore become imperative.

Besides environmental concerns, the Plastic processing industry faces multiple challenges including lack of advanced technology, limited infrastructure, particularly electricity, & unpredictability of feedstock prices. The lack of proper infrastructure, particularly electricity, has always been one of the major deterrents to investment in the sector. Here the initiative of the Government, the National Infrastructure Pipeline(NIP)forFY2019-25,afirst-of-its-kind,whole-of-government exercise is expected toprovide world-class infrastructure to citizens and improving their quality of life. The transport sector including well-developed roads and highways, a widespread railway network, fast-growing aviation and developing ports, shipping and inland waterways infrastructure in India, is expectedtogrowataCAGRof5.9percenttherebybecoming the fastest growing area of India's infrastructure sector. The India Investment Grid has a vision to provide last mile connectivity

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and electricity connection through targeted installation of 175 GW of renewable energy capacity in the state of Assam. In the meantime, substantial effort would be required from the stakeholders to overcome the challenges and achieve optimal results.

The Hydrocarbon Vision 2030 released by the Ministry of Petroleum & Natural Gas in 2016 envisages economic development in the northeast region by leveraging the region’s hydrocarbon potential, enhancing access to clean fuel and accelerating growth of the region. Feedstock cost, the largest component of the cost of producing Polymers is high in India as compared to the Middle East. Indradhanush Gas Grid Limited (IGGL), a Joint Venture of IOCL, ONGC, GAIL, OIL and NRL was incorporated in August, 2018 for implementing the Hydrocarbon Vision 2030. IGGL has moved ahead towards fulfillingtheGovernment’svisionfordevelopingthe 1650 km long North East natural gas pipeline grid and viability gap funding/capital grant to the extentof60%of theestimatedtotalcostof theproject has been approved by the Government. The natural gas grid in the northeast region is envisioned to connect with the upcoming, Barauni-Guwahati natural gas pipeline as a part of Urja-Ganga scheme. The grid would also connect to sustainable and viable gas sources in thenortheastand it isexpected that thisgasgrid will make additional gas available to your Company which has since beginning been dogged by natural gas supply constraints. Due its unique location, your Company has an option of sourcing feedstock from the neighbouring countries like Myanmar and Bangladesh in future provided it is viable and is supported by adequate transport infrastructure and Government policy. Taking into account the gas availability in future, your Company is working for expansion/capacityenhancement of the Plant.

Your Company’s proposal for setting up of a Butene-1 and 2nd Stage Hydrogenation of Pyrolysis Gasoline plant at Lepetkata, Assam at a cost of ₹ 386 Cr to overcome the difficulties

in sourcing of co-monomer Butene-1 was approved by the Government of India in June, 2019 and Engineering and Project Management Consultancy was awarded to M/s EIL on 31st January, 2020. Various works and clearances are in process and global tender for licensor selectionisbeingfloatedshortly.Theinvestmentwill ensure value addition leading to realization of better margins and product slate in future.

The Vision Statement 2024, Department of Chemicals and Petrochemicals envisages taking advantage of the gap between domestic production and consumption of Polymer, to establish India as a leading chemicals & petrochemicals manufacturing hub with a thrust on reduction in import dependency by attracting investments for manufacturing quality products usingcuttingedgetechnologyinspecifiedclusterswith focus on sustainability. The National Policy on Petrochemicals aims to achieve sustainable development for the petrochemical industry by promoting research and development and human resource planning and development to cater to the needs of the industry by adopting a mission mode approach.

The end products of petrochemicals such as polymers have become inevitable in almost all areas such as packaging, automotive, infrastructure, transport and telecommunication. R&D efforts and diversification of usage in anenvironmentally friendly and competitive way with scalability of projects in new areas would strengthen the Indian petrochemical sector. The number of Centre(s) of Excellence (COE) beingset up in existing educational and researchinstitutions working in the field of polymersto improve existing petrochemical technologyand research in the country and to promote the development of new applications of polymers and plastics, is steadily increasing. So far, eleven COEs have been set up including in several IITs, addressing an array of pertinent subjects including sustainable green materials, speciality polymersandmanufacturingofnextgenerationbio-medical devices. The Central Institute of

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Plastic Engineering and Technology (CIPET) which is a Centre for Skill and Technical Support (CSTC) has also been set up to develop manpower in different disciplines of Plastics Engineering and Technology with centres all over the country including two in the northeastern region at Guwahati and Imphal. So far, CIPET operates at 37 locations spread across the country which includes 7 Institute of Plastics Technology (IPTs), 23 Centres for Skilling and Technical Support (CSTS), 3 School for Advanced Research in Polymers (SARP), 3 sub-centres and 01 Plastics Waste Management Centre. The Government has also set up Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) which are clusters that provide investors with high-class infrastructure and a competitive environment conducive for setting up businesses with a view to bring together manufacturing facilities, logistic and other services, required infrastructure, residential and administrative areas etc. to provide common infrastructure and support facilities.

At the state level, Assam completed the reforms stipulated by the Department of Expenditure,Ministry of Finance, under the ‘Ease of Doing Business' which is an indicator of growth of the state economy and facilitator of investment friendly business climate. The North East Industrial Development Scheme (NEIDS) in force from 2017 to 2022 with various incentives on investment, interest, insuranceGST, incometax,transport and employment, provided to new units in manufacturing and services sectors is expectedtospeedupindustrialdevelopmentanddownstream industries in the NE region.

A highly fragmented industry, unreliable power and comparatively high energy costs in India are major constraints on optimal capacity utilization in the plastic processing sector. Downstream industries in the petrochemical industry in India are mostly in the MSME sector which faces varied constraints including lack of adequate capital, poor infrastructure, access to modern technology, access to markets and getting statutory clearances

related to power, environment, labour etc.

Nevertheless, considering how indispensible Polymers are in providing critical inputs to all major sectors in the economy, your Company is in an advantageous position to tap the available potential in the northeastern region having the lowest per capita consumption (4 kg) in Polymers in the country. This coupled with lack of any major competition in the region augurs well for marketing its products in the region besides exportingtoneighbouringcountries.

Segment wise or Product wise Performance During the year, 2.85 lakh MT of Polymers and 60,144 MT liquid hydrocarbons were produced. A total quantity of 305749 MT of Polymer, 42371 MT of Hydrogenated Pyrolysis Gasoline (HPG), 9586 MT of Carbon Black Feed stock (CBFS), 8645 MT of Wash Oil High Aromatics (WOHA), 271 MT of Slop Oil and 796 MT of Liquid Nitrogen were sold to various locations in the country,

LLDPE sale is the major contributor to total sale. The company operates in petrochemical segment and plays a dominant role in the North East Region. The company also enjoys its geographicalproximitytoemergingmarketsuchas Bangladesh and during the year the company exported1930MTpolymer.ThecompanyisalsoexploringtomakeprofitableforaysintoNepal&Bhutan.

The plant is working on energy efficiencybenchmarks in collaboration with Bureau of Energy Efficiency to set standards of carbonemissionsandspecificenergyconsumption.YourCompany endeavours for continual improvement across all facets of energy management which include generation, distribution and consumption. Dedicated teams are working on monitoring, reporting and periodic energy audits and benchmarking with other petrochemical units with like technology to enable your Company to improve energy performance as well as for continual improvement in production

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efficiencyandupholdingglobalcompetitiveness.

Your Company is committed to enhance customer satisfaction and standardizing business processes through the implementation of Quality Management System. Product quality benchmarking is done to sustain the global industry standards. To monitor and maintain the quality of the products, your Company has a NABL accredited Laboratory in accordance with ISO/IEC 17025:2017 for Natural Gas Composition,finishedpolymerproduct(LLDPE/HDPE/PP)andEffluentTreatedWater.All testsare carried out in accordance with national and international testing protocol such as ASTM, UOP, EN & IS. For benchmarking the product quality and to compete with the global standards, your Company participates in Inter Laboratory Comparison(ILC)testingandProficiencyTesting(PT) every year with the organizations working in thesamefieldandtheresultsalwaysremainwithinthespecifications.

Outlook The implementation of a national lockdown in India on March 24, 2020 brought economic activity to a halt, affecting both production and consumption. According to the World bank, this leadtonegativegrowthinthefirsthalfofthefiscalyear and only modestly positive in the second half. The World Bank estimated that over the entire FY 2020-21, India’s economy contracted by 8.5%. But due, to a great extent, to severalproactive monetary and fiscal policy measuresby the Government and the Reserve Bank of Indiatheeconomyisexpectedtorebound-witha strong base effect materializing in FY 2021-22 - and growth is expected to stabilize at around6-6.5 % thereafter. Prospects of an economic reboundinSouthAsiaarefirmingupasgrowthis set to increase by 7.2 percent in 2020-21 and 4.4 percent in FY 2021-22, climbing from historic lows in 2020 and putting the region on a path to recovery despite uneven economic activity far below pre- COVID-19 estimates. The various financialandeconomicpackagesofferedby the

Indian government to offset the lockdown losses and efforts to keep COVID-19 caseload under control and swiftly roll out its vaccine campaign promises to push the country to bounce back in earnest. The strategy and economic impact during the ongoing second wave of the pandemic however, remains to be seen.

During the nearly three-month national lockdown, not only did demand in India's plastics industry crash, but there was also a heavily reduced labour force, transportation problems and a severe credit crunch. Certain sectors in the industry which include the monofilamentandraffiasector,healthandhygienesector,andmultilayerfilmsectorhavehowevershownsomeresilience and improvement and the pandemic crisis has also helped the industry focus on new materials especially in the medical sector. The industry has since, seen a resurgence in demand. A fundamentally strong economy and widespread use of plastics across all sectors, often replacing conventional material, has sustained the industry throughdifficulttimes.Sincetheoutbreak,arisein the demand for packaging materials for food, medicine, personal care, and medical products has combatted the impact on the Polymer industrytosomeextent.

The Chemicals industry in India is highly diversified,coveringmorethan80,000commercialproducts and broadly classified into Bulkchemicals, Specialty chemicals, Agrochemicals, Petrochemicals, Polymers and Fertilizers. As perexportand import figuresof theMinistryofChemicals and Fertilizers, exports of chemicalsandchemicalproducts(excludingpharmaceuticalproducts and fertilizers) contributed 14.9% of totalexportintheyear2020-21(uptoSeptember2020) compared to 12.4% in the year 2019-20 during the corresponding period. Imports contributed 14.4% of total imports in 2020-21 (upto September 2020) which was 11.1% in the year 2019-20 during the same period. CAGR in exportoftotalchemicalsandchemicalsproducts(excludingpharmaceutical&fertilizerproducts)during the period 2015-16 to 2019- 20 is 11%

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while CAGR of total national export is 6.64%.CAGR in Import of total chemicals and chemicals products (excluding pharmaceutical & fertilizerproducts) during the period 2015-16 to 2019-20 is 8.25% while CAGR of total national import is 7.78%.

Long term outlook of the petrochemicals industry is promising and demand will remain robust from major consumer segments such as packaging, automobiles, consumer durables, construction, and irrigation. With COVID -19 expected tolinger, Plastics with its superior quality and cost effectiveness will continue witnessing increasing demand in manufacture of medical and hygiene products like PPE kits, syringes, masks, gloves, atomisers, test kids, equipment and in packaging materials for food, medicine, personal care, and medical products specially in E commerce. Demand has also been gradually growing from sustained substitution of metal pipes with plastic pipes, and glass and metal containers with plastic containers.

As a net importer of Chemicals in general and most polymers in particular, India has promise for expansion of existing and adding of newcapacities. The major constraint for capacity additions in Polymers is the unavailability of feedstock olefins owing to lack of sufficientcracker capacity. This is gradually easing due to adding of cracker capacities and flexibilityin switching between alternative feedstock in dual feed crackers. From the perspective of your Company, the upcoming natural gas grid in the northeastern region augurs well for easing the feedstock constraints in the near future

Plant operations in your Company are steady and sustained with capacity utilization of 106 during thefinancialyear.WithGAILasthesolemarketer,the products are sold to downstream industries and the market share of your Company in Polymer is increasing consistently and presently stands at more than 90% in the north-eastern region (for the grades produced) where 11.81% of its products were sold in FY 2020-21.

The number of plastic processing units in NER increased from 158 in 2014 to 235 in 2020 and it is the constant endeavor of your Company to prioritize sales in the region to maximizerealisation. Entrepreneur development activities are being regularly conducted across the region to create awareness regarding plastic downstream industries. An exercise for enhancement ofPolymer production capacity by 30 % through de-bottlenecking has been initiated pre-feasibility studies are being carried out for expansion ofpolymer capacity based on additional availability of feedstock in NER.

Risks and Concerns Shortage of feedstock has been the major concern for the petrochemical industry resulting in plants of suboptimal capacity. Being highly capital intensive, petrochemical plants need an optimal size to generatebenefits and feedstockconstraints both in terms of quality and quantity hinder feasibility. Feedstock cost is the single largest component of cost of production for Polymer industry. Despite firm arrangementsby the Government of India for feedstock availability for 15 years of plant operation for

Quality Circle team event Public hearing for the Butene 1 plant.

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your Company, fluctuations in feedstock pricesis a major worry. Your Company’s plant has been facing constraints in both quantity and quality of natural gas and supply of naphtha and has had to use more naphtha at higher cost to compensate for the shortfall of natural gas in order to sustain production levels. Approval of feedstock subsidy by the Government of India and release of `1700 crores during the year under review has mitigatedtheeffectstosomeextent.

Your Company does not as yet have a captive generation facility for Butene- 1, a co-monomer required for the production of polyethylene, and has therefore been facing considerable challenges in sourcing the raw material. On the upside, your Company’s proposal for setting up a captive Butene 1 and 2nd Stage Hydrogenation of Pyrolysis Gasoline plant is now moving forward for which selection of Licensors and obtaining of environmental clearances are presently in process.

ThePlasticParkinTinsukiaapprox50kmawayfrom the BCPL plant, with various opportunities including investment in injection moulding, blow &rotomouldingandextrusionmouldingfacilitieshas unfortunately not been able to generate the desired interest which could boost downstream industries. In view of the need to address the deterring factors and concerns of local entrepreneurs to make the facility functional, your Company has offered additional discount for those willing to set up plastic downstream units in the Park and is proactively engaging in discussions with entrepreneurs on site along with representatives from AIDC and Government of Assam. All efforts are being made in this respectinordertomaximizesaleofPolymersinthenorth-easternstatestothedesiredextent.

YourCompanyisthebeneficiaryofgovernmentalsupport in the form of feedstock and other subsidies and in a major relief the Government of India has in December, 2019 approved feedstock subsidy amounting to approximately`4600 crore for 15 years of plant operation, out

of which `1700 crore was released in FY 2020-21. Exemption from VAT on feedstock for 15years has also been cleared by State Cabinet and claims are expected to be released shortly. Theplant viability is dependent on continuation of thesebenefitsandthereisalwaysariskofnon-viability should such support be discontinued in the future due to changing government policy.

The proposal for implementation of revised pay scales remains pending with the Government for over three years now and needs to be consideredexpeditiouslytoboostthemoraleofthe employees.

Plastics invariably bear the stamp of a pollutant despite being an essential commodity findinguse in all spheres of our daily lives. Mismanaged disposal leading to environmental pollution is the root cause, rather than its use. Sensitization as well as regulation on the use and disposal of plastics is therefore of paramount importance to combat the negative perception. There is wide scope for industries based on re-cycling of plastics waste and having effective guidelines in place could not only address the issue of environmental degradation but also generate capital.

The north eastern region of the country has suffered from a number of logistics handicaps including infrastructure such as electricity, communication and transportation. Banking and finance are sporadic and unevenly distributedamong urban and rural areas. Amenities are limited in nature, and the lack of economic opportunities prompts migration, particularly that of skilled resources to work and live in better developed and developing parts of India. Private investment in the region has been challenged by high transaction costs coupled with a negative perception on business environment. Government initiatives, programmes and economic reforms including the Act East Policy are however expected to alleviate the situationand bring in better investments for this region which can outperform any other part of India

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in terms of availability of natural resources and international border. Its remoteness of location in terms of the nation is however combatted to an extent by the unique advantage of beingideally located to Myanmar, Bangladesh and other ASEAN countries with promising market. Your Company is already marketing its products in Bangladesh.

The biggest concern looming large at present is the ongoing second wave of the COVID-19 pandemic which poses a threat to economic recovery in India. The second wave of infections presents a risk to growth forecast which was improving, as the re-imposition of virus management measures will curb economic activity and could dampen market and consumer sentiment. The demand for Plastics in medical, health, hygiene and packaging products is expected to sustain thePolymer industry during these challenging times.

Your Company has a risk management policy which is in the process of being updated. Various risks are being periodically reviewed to identify and mitigate financial, operational and otherrisks. An online legal compliance management system assists in periodic review of compliances.

Internal Control Systems and their adequacy Due attention has been given since the beginning to having sufficient internal controls forsafeguarding the assets of your Company and therehasbeenreliablefinancialreporting,timelyfeedback on the achievement of targets and compliance with applicable laws and regulations. Your Company has been gradually introducing its own systems, policies and procedures and in areas in which this is yet not achieved, those of its holding company are being followed. A comprehensive enterprise risk management policy has recently been adopted with fivecomponents of enterprise risk management framework viz. governance, strategy, performance, review and communication which are supported by a set of principles. These

principles cover everything from governance to monitoring. A risk management organogram would render the support necessary for achieving the risk objectives.

Quarterly internal audit is being conducted by the Internal Auditors, M/s Batliboi & Purohit, Chartered Accountants, Mumbai. The progress and activities of your Company is being continuously monitored and reviewed at all levels including the holding company, GAIL, the State and Central Government authorities. M/s Batliboi & Purohit, Chartered Accountants, Mumbai has alsoevaluatedtheefficacyoftheInternalControlSystem on Financial Reporting and found the systems in place to their satisfaction. Further, an externalagencyisalsoreviewingtheIFCinBCPLand their recommendations shall be discussed and adopted suitably.

Financial Performance with respect to Operational Performance The plant has operated at 106% capacity in 2020-21. BCPL has been able to maintain the trend of capacity utilization by using additional naphtha to compensate for short supply of natural gas. The polymer prices have caught an upward trajectorysincebeginningofQ-3ofthefinancialyear and the same sustained for balance part of the year. During the year, BCPL consumed gas of ₹371.03coreandnaphthaof₹605.07croreforproducingpolymerwhichconvertedtosaleof₹2449.67 crore after stock adjustments.

India saw a V-shaped recovery from the Covid-19 related disruptions as most consumption and industrial indicators were back in positive growth territory in the September-December quarter after being in deep negative in the June quarter. The business environment for petrochemicals in domestic market improved sharply in the second half of the year with gradual easing of lockdowns and revival in economic activities, resulting in demand recovery to near pre-COVID levels by the end of the year. Your Company has been able to demonstrate both resilience and agility

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resulting in more than 100% capacity utilization of the plant despite Covid-19 related challenges. With supportive price trend, your Company managed EBITDA margin of 39% (*without considering reimbursement of VAT on gas for prior period) in FY 2021 against 21% in FY 2020 and the same demonstrated strong upside for the petrochemical business during the year.

Thesignificantimprovementinplantoperationswas noted by the lenders and credit rating agencies. As a result, CRISIL has up-graded the credit rating of the company from AA-/stable to AA-/Positive. Another rating agency, M/s Acuite Ratings have also upgraded their rating from AA to AA+ for BCPL.

Material developments in Human Resources, Industrial Relations front including number of people employed The total sanctioned manpower strength of your Company is 700 (491 executives + 209 non-executives) and the employee strength on 31stMarch, 2021was 630 including 438 executivesand 192 non- executives out which 02 werelienposts. 11executiveswereonsecondment/deputation from GAIL (India) Limited, the major equity holder.

In the year under review, 919 man days of training were conducted in your company promoting employeestoacquirenewskills,sharpenexistingones to perform better and increase their

productivity.

CommunicationMatrixwas introducedwith anobjective to facilitate and provide a platform to employees, association, unions and contractual workers to raise their issues of concern before the management/senior level employees. Open forums were organized as part of this initiative.

In the year under review, the 1st Public Relations Symposium was organized for Public Relations and Corporate Communication Professionals working in various organizations based in NE.

Your Company received many awards and accolades including certification by Great Placeto Work. Your Company is operating while maintaining COVID protocols and abiding by guidelines issued by various authorities.

Industrial relations remained cordial during the year.

Environmental Protection and Conservation, Renewable Energy Developments, Foreign Exchange Conservation Your Company has remained steadfast in its responsibility towards conservation of the environment. Pollution control and other environment protection norms are being fully complied with and there has been an endeavour to maintain high levels of safety and environmental standards along with operational efficiency.

Women’s Day celebration - Donation of wheelchair by Women em-ployees

Foundation Day, 2021 -Felicitation of employees completing ten years of service

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A modern effluent treatment plant ensurespropereffluentdischargewithin theprescribedlimits and it is fully functional. Conversion of oil sludge into natural soil is being done through the bioremediation facility. A chemical treatment facility for part reuse of treated effluent waterinfirewaternetworkandhorticulturehasbeeninstalled. Online continuous quality monitoring systems for treated water, stacks monitoring and ambient air quality monitoring installed which is connected to the Central Pollution Control Board(CPCB)serverona24x7basis.Moreover,the ambient air quality monitoring, work zone area air and noise monitoring, stack emission monitoring, treated water quality monitoring, storm water monitoring, meteorological data monitoring etc. are also being carried out by an MoEF&CC approved third party.

Your Company celebrated World Environment Day (WED) on 5th June, 2020 with tree plantation and various other programs including inauguration of a souvenir "Envicare Vol. II" following the Govt. guidelines and protocols of pandemic COVID 19, joining the worldwide campaign for creation of awareness for protection of our precious environment. Your Company also celebrated Van Mahotsav on 1st July, 2020, National pollution control day on 2nd November, 2020 and World

Water Day on 22nd March, 2021 including earth day, earth hour for creating awareness on conservation and acknowledged its commitment as a responsible corporate citizen.

With an aim to spread awareness for the protection of our environment and ecosystem, your company organizes different events during World Environment Day, including large scale tree plantation, awareness drives among its stakeholders. Your company also observed the Oil & Gas conservation drive under “Saksham-2021” to spread the awareness and importance of non-renewable energy sources. As a part of “Saksham-2021”, BCPL organized an awareness cum interactive programme on 28th January, 2021 for students from nearby schools by the environmental activist and forest man of India Padma Shri Dr. Jadav Payeng. More than 600 students from nearby schools were present in the programme. The cyclothon was also organized by BCPL as part of Saksham 2021 in association with few cycling clubs of Assam so as to create awareness on Oil & Gas conservation, protection of environment and physical fitness. All theactivities were carried out following the Govt. guidelines and protocols of pandemic COVID 19.

Your Company won the prestigious “FICCI Chemicals and Petrochemicals Awards 2021” in

Shri Reep Hazarika, Managing Director, Shri Pruthiviraj Dash, Director (Finance) and other officials during Van Mahotsav

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the category of Most Environmentally Friendly Company & “20th Annual Greentech Environment Award 2020” in Petrochemical Sector for outstanding achievement in Environment Management.

Towardsconservationofforeignexchange,yourCompany has taken measures like indigenization of spares and services wherever possible.

Corporate Social Responsibility Your Company believes in sustainable business practice and has been implementing various development initiatives since the beginning to

promote inclusive growth. Having now entered theprofitregime,abudgetof₹11crore50lacshasbeenapprovedforCSRactivitiesforthefinancialyear 2020-21 with various projects under the broad heads of Health and Nutrition, Promotion of Education, Swachhata and Sanitation, Skill enhancement & alternative livelihood and Sustainable Development and Rural Development. The projects are being monitored and implemented through a CSR Coordination Team. A dedicated CSR Team is being developed for the coming years. All relevant guidelines on CSR are being complied with.

Data Source: DCPC Annual Report 20-21, reports by Invest India, World Bank, GoI websites.

Forward Looking Statement: This document includes statements that are, or may be deemed to be, “forward-looking statements” which by their nature involve risk and uncertainty as they relate to future events and circumstances, a number of which are beyond the Company’s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements, due to economic conditions, government policies and other incidental factors such as litigation and industrial relation. Readers are advised not to place undue conviction on such statements.

Health check-up Camp at Dibrugarh

Shri Reep Hazarika, Managing Director receives the FICCI Chemicals and Petrochemicals Award 2021 in the category of Most Environment Friendly Company from Shri Mansukh L Mandaviya, then Hon’ble Minister of State (Independent Charge), Ministry of Ports, Shipping and Waterways & Minister of State, Ministry of Chemicals & Fertilizers at the India Chem 2021 conference held at New Delhi on 17th March 2021.

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Report on Corporate Governance Company’s Philosophy Your Company is committed to the adoption of best governance practices applying sound management systems and adhering to compliance of laws in a highly transparent and ethical manner with emphasis onintegrityandaccountabilitytofosterconfidenceofthestakeholdersandthepublicandtoenhancelong term stakeholder value.

Board of Directors As on 31st March, 2021, the Board of Directors of your Company consisted of ten Directors including the ChairmanandManagingDirector,GAILbeingtheex-officioChairmanoftheCompany,twofunctionalDirectors, One Government Director, five promoter Directors and one Independent Director. TheNominee Directors are appointed in accordance with the Joint Venture Agreement and the Articles of Association of the Company. Appointment of another Independent Director against vacancy has been in process with the Government.

The composition of the Board of Directors, along with Directorships and committee positions, attendance records during the year under review is as below:

Sl.Sl.No.No.

Name of the DirectorName of the Director DesignationDesignation No. of Directorships / No. of Directorships / Chairmanship in other Chairmanship in other

companies #companies #

No. of Committee* No. of Committee* Memberships /Memberships /

Chairmanship in other Chairmanship in other companies#companies#

Number of Board Number of Board meetings meetings

AttendanceAttendancein lastin lastAGMAGM

ChairmanChairman DirectorDirector ChairmanChairman MemberMember AttendedAttended

Functional Directors1 Shri Reep Hazarika

(DIN 08667195)Managing Director

- - - - 5 Yes

2 Shri Pruthiviraj Dash(DIN 08253888)

Director (Finance)

- - - - 5 Yes

Promoter Directors3 Shri Manoj Jain

(DIN 07556033)Chairman & Managing Director GAIL (India) Ltd.

Chairman 5 1 - - 5 Yes

4 Shri Harish Madhav(DIN 08489650)Director(Finance), OIL India Ltd (w.e.f. 29.05.2020)

Director - 3 - 1 4 Yes

5 Shri R. K. Dutta(DIN 00205669)Advisor to Government of Assam

Director - 1 - 1 5 Yes

6 Dr. K K Dwivedi, IAS(DIN 07632374)Principal Secretary to Govt. of Assam, Industries & Commerce Department

Director - 7 - - 4 No

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Sl.Sl.No.No.

Name of the DirectorName of the Director DesignationDesignation No. of Directorships / No. of Directorships / Chairmanship in other Chairmanship in other

companies #companies #

No. of Committee* No. of Committee* Memberships /Memberships /

Chairmanship in other Chairmanship in other companies#companies#

Number of Board Number of Board meetings meetings

AttendanceAttendancein lastin lastAGMAGM

ChairmanChairman DirectorDirector ChairmanChairman MemberMember AttendedAttended

7 Shri S K Barua(DIN 06503943)Managing DirectorNumaligarhRefineryLtd.

Director - 1 - - 4 Yes

8 Dr. Ashutosh Karnatak(DIN 03267102)Director (Project)GAIL (India) Ltd.(up to 20.05.2020

Director - 1 - 1 NA NA

Shri M V Ravi Someswarudu(DIN 07309877)ExecutiveDirector(O&M-CO)GAIL (India) Ltd.

Director 1 - - - 5 Yes

Government Directors9 Shri Kashi Nath Jha

(DIN 08568206)Joint Secretary,Department of Chemicals and Petrochemicals,Ministry of Chemicals & Fertilizers(upto 18.01.2021)

Director - - - - 3 Yes

Shri Kapil Verma(DIN 0009056466)Deputy SecretaryMoP&G(w.e.f. 06.02.2021)

Additional Director

- - - - - NA

Independent DirectorShri Saumitra Sarkar(DIN 08401917)Chartered Accountant M/s Saumitra Sarkar & Associates

Independent Director

- - - - 5 Yes

(*) (#)

Committee positions refer only to Audit Committee and Stakeholders Relationship Committee. Other Company means public companies only.

Details of Board Meetings held during the year 2020-21 Five meetings of the Board of Directors were held during the year as per the following details:

No. of the Board Meeting

Date Board Strength No. of DirectorsPresent

87th 29.05.2020 10 1088th 28.07.2020 10 889th 25.09.2020 10 890th 28.10.2020 10 1091st 29.01.2021 9 9

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Profile of Directors being appointed / reappointed Shri Saumendra Kumar Barua, Director retires by rotation at the ensuing annual general meeting pursuant to section 152(6) of the Companies Act, 2013 and being eligible, offers himself for reappointment. NominatedbyNumaligarhRefineryLimited,ShriSaumendraKumarBarua,hasbeenaDirectoron theBoard of Directors of BCPL w.e.f 01.02.2018. Shri Barua is a Cost and Management Accountant from ICWA andanLLBfromDibrugarhUniversitybyqualification.HeispresentlyservingasManagingDirectorofNumaligarhRefineryLtd.witheffectfrom31stJanuary2018andhas37yearsofrichandvariedexperiencein the Indian Oil and Gas Industry. Prior to his appointment as Managing Director of NRL, he served as Director(Finance)inNRL.Overthelast27yearsinNRL,hehasgarneredrichexperienceofsettingupthe grass root mega project starting from its conceptualization, implementation, commissioning and operations thereafter. He has in-depth knowledge in areas of Finance, Treasury Management & Corporate Finance, Business Development, Commercial and Legal, JVs, Corporate Communication, Administration and Liaison. Mr. Barua had been the Chairman, CII North East Council. He was awarded Best CMA-CFO 2015 by Institute of Cost Accountants of India.

Shri Harish Madhav, Director retires by rotation at the ensuing annual general meeting pursuant to section 152(6) of the Companies Act, 2013 and being eligible, offers himself for reappointment. Nominated by Oil India Limited, he is a member of the Institute of Chartered Accountants of India (ICAI) Shri Harish Madhav took over as Director (Finance) on the Board of Oil India Limited on 02.08.2019 before which he servedasExecutiveDirector(Finance)atOilIndia’sCorporateofficealsofunctioningastheChiefFinancialOfficer(CFO)handlingadiversegamutoffinanceandaccountingfunctionscoveringInternationalFundRaising, Treasury Management, Corporate Strategy, Risk Management, Corporate Accounts & Audit, and Budgeting. His tenure in various capacities during the last decade witnessed major events at OIL and included successful raising of foreign currency borrowing of over $4.5 Billion in the form of syndicated loansandbonds.HewasalsoinstrumentalinfirsteverlistingofforeigncurrencybondsbyanIndianoilsectorcompanyontheInternationalSecuritiesMarketofLondonStockExchange(LSE). BeforejoiningOIL, he had also worked with Hindustan Petroleum Corporation Ltd. Shri Madhav has over 31 years of rich andvariedexperienceinOil&GasindustryinbothUpstreamandDownstreamsectors.

Shri M V Ravi Someswarudu, Director retires by rotation at the ensuing annual general meeting pursuant to section 152(6) of the Companies Act, 2013 and being eligible, offers himself for reappointment. Nominated by GAIL India Limited, he is a post-graduate in Chemical Engineering, an MBA with specialization in MarketingandaCertifiedEnergyAuditor.PresentlyShriMVRavi Someswarudu isExecutiveDirector(O&M-CO),GAIL(India)Ltd.Hehasrichanddiverseexperienceencompassingmorethan34yearsinthe Oil & Gas, Petrochemical Sectors covering diverse functions like Project Development, Operations and Maintenance,TechnicalServices,ProcessDesignandEngineering,TechnologySelection,R&D,ExplorationandProduction,DesignofPipelines&Gasprocessingplantsetc.HehadalsoservedasChiefExecutiveOfficer,GAILGasLtdandwasin-chargeofthePetrochemicalprojectofGAIL-PatasinceMay2017.Earlier,hewasresponsibleforExploration&ProductiondepartmentandPCgroupatCorporateOfficeandalsoheldadditionalchargeofProjectDevelopmentDepartment.HeplayedasignificantroleinestablishingthePolicies and Procedures in R&D and E&P Divisions of the company and in conceptualizing and taking up LNG Terminal projects in India.

Shri Kapil Verma, was nominated vide MoP&NG letter No 31033/1/2016-CA/FTS:42979 dated 19.01.2021 as Government Director on the Board of Directors of the Company vice Shri Kashi Nath Jha, Joint Secretary, MoC&F with immediate effect for a period of three years on co-terminus basis or until further orders whichever is earlier. Shri Kapil Verma holding DIN 9056466 and aged 44 years was inducted as an Additional Director w.e.f. 06.02.2021, being the date of allotment of DIN by MCA till the conclusion of this Annual General Meeting. An Engineering Graduate (BE in Mechanical Engineering) from Indian Institute of Technology (IIT) Roorkee, he belongs to Indian Defence Service of Engineers cadre (IDSE) of

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Military Engineer Services. He has served L&T for a year and ONGC for two years. He has served the Army, Navy, Air Force and DRDO, dealing with strategic projects of national importance and has been awarded byallthreeforcesandDRDOforhisexemplarycontributions.PresentlyheisservingasDeputySecretary,MinistryofPetroleumandNaturalGasworkingtowardsmakingIndiaself-reliantinenergyandexploringbetter possibilities in supplementing the energy requirements of India particularly Bio-Fuels.

He does not hold any shares in the Company. He is not a Director in any other Company or related to any Director or other key managerial personnel of the Company.

The Company has received a Notice under section 160 of the Companies Act, 2013, proposing the candidature of Shri Kapil Verma as a Director of the Company.

Audit Committee DuringtheyearunderreviewfivemeetingsoftheCommitteewereheldon28.05.2020,28.07.2020,24.09.2020, 28.10.2020 & 29.01.2021. Details of composition and attendance during the year under review are as below:

No of meetingsheld during the tenure of the

memberattended by the member

Shri Saumitra Sarkar, Chairman 5 5Shri R K Dutta, Member (up to 49th AC meeting) 1 1Shri S K Barua, Member 5 5Shri Harish Madhav, Member 5 5Shri M V Ravi Someswarudu (w.e.f. 50th AC meeting) 4 4

The terms of reference of the Audit Committee are in line with the DPE Guidelines on Corporate Governance and the Companies Act, 2013 and the recommendations of the Committee during the year have been accepted by the Board.

Nomination and Remuneration Committee

During the year under review two meetings of the Committee were held on 24.09.2020 and 29.01.2021. Details of composition and attendance during the year are as below:

No of meetings

held during the tenure of the member

attended by the member

Shri Saumitra Sarkar, Chairman 2 2Shri R K Dutta, Member, 2 2Shri S K Barua Member 2 2Shri M V Ravi Someswaraudu, Member (w.e.f. 37th N&RC meeting) 2 2

All themembers are non-executiveDirectors. The scope of the Committee is in consonancewiththe provisions of the Companies Act, 2013 and the DPE Guidelines on Corporate Governance. It also approvesPIS tonon-executivesandreviewsandrecommends the formulationofHRpolicy in theCompany.

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Other Committees An empowered Committee of the Board on Contracts and Procurementforexpeditiousclearanceof approvals, comprising of the following members as on 31st March, 2021

1. Shri S K Barua : Chairman2. Shri Harish Madhav : Member3. Shri Reep Hazarika : Member4. Shri P R Dash : Member

A Committee on Sustainability & CSR comprising of the following members as on 31st March, 2021:1. Shri S K Barua : Chairman 2. Shri Saumitar Sarkar : Member3. Shri Reep Hazarika : Member4. Shri P R Dash : Member

The terms of reference of the Committee are in line with the scope prescribed under the Companies Act, 2013 and DPE/Government Guidelines.

A Committee on Health, Safety and Environment to oversee the HSE performance of the Company and comprising of the following members as on 31st March, 2020:

1. Shri R K Dutta : Chairman2. Shri S K Barua : Member3. Shri M V Ravi Someswarudu : Member4. Shri Reep Hazarika : Member

A Share Transfer Committee comprising of the following Members as on 31st March, 2020:1. Shri Reep Hazarika : Chairman2. Shri S K Barua : Member3. Shri P R Dash : Member

Remuneration to Directors Being a Central Public Sector Enterprise, the appointment of the Whole-Time Directors and the terms & conditions thereof including remuneration are determined by the administrative ministry. ThedetailsofremunerationpaidtotheWhole-timeDirectorsoftheCompanyduringthefinancialyear 2020-21 are as below:

Amount in `

Name Salary & Allowances

Contribution to PF, Gratuity and

other funds

Other benefitsandperquisites

Performance linked

Incentives

Total

Shri Reep HazarikaManaging Director 29,28,659 2,82,312 2,00,400 - 34,11,371

Shri P R DashDirector (Finance) 31,27,169 2, 54, 315. 2,08,306 - 35,89,790

ThePart-timeNon-official (Independent)Director is not beingpaid any remunerationother than

| 47 |

thesittingfee,whichamountedto₹2,50,000toShriSaumitraSarkar.TheNomineeDirectorsdonotreceiveanypecuniarybenefitsincludingsittingfeefromtheCompany.

General Meetings The details of the last three Annual General Meetings are as follows:

No of the AGM Date Time Venue Any Special Resolution passed

11th 28.09.2018 3.00 pm Hotel Vivanta by TajG.S. Road, Khanapara, Guwahati, Assam 781022

None.

12th 20.09.2019 3.00 pm Hotel Vivanta by TajG.S. Road, Khanapara, Guwahati, Assam 781022

None.

13th 25.09.2020 3:00 pm RegisteredOffice,HNo6,Bhuban Road, Uzanbazar, Guwahati 781005- held through VC/OAVM.

Yes adoption of new set of MoA/AOA of the Company in line with Companies Act, 2013.

14th Annual General Meeting Date : Thursday, 16th September, 2021Time : 3:00 PMVenue : Radisson Blu Hotel, National Highway 37, Gotanagar, Guwahati, Assam 781033

Disclosures i. The related party transactions are disclosed in the notes to accounts forming part of the annual

report.ii. The Company has complied with the requirements of the DPE Guidelines on Corporate Governance,

saveandexceptthecompositionoftheBoardwithrespecttonumberofNomineeDirectorsandIndependent Directors. The Board has requested for a special dispensation from the Government of India regarding reduction in the number of Nominee Directors appointed as per JV Agreement. Appointment of a second Independent Director has been in process with the Government of India.

iii. The Company has a Whistle Blower Policy whereby employees can raise concerns to the competent authority in case they observe unethical and improper practices or any other wrongful conduct in the Company. The policy provides direct access to the Chairman, Audit Committee and necessary safeguards for protection of the whistle blower from reprisals or victimization.

iv. A new and more comprehensive Risk Management Policy has been adopted for risk assessment and mitigation during the operations phase.

v. The Public Procurement Policy for Micro and Small Enterprises is being implemented in the Company and consistently since FY 2014-15 your Company has been meeting the requisite procurement target from the Government of India MSME sector. Annual procurement order (supplies & services) of the value of 40.12% were issued to MSE vendors in the FY 2020-21 against the Government of India target of 25% as per Public Procurement Policy, 2012 as amended w.e.f. 9th November, 2018.

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Audit Qualifications For the 14thsuccessiveyearthereisnoauditqualificationinthereportoftheStatutoryAuditorsonthe accounts of the Company for the year ended 31st March 2021.

Means of Communication The Company has a website www.bcplonline.co.in. There is a dedicated cell for information sharing with stakeholders through the use of information and communication technologies particularly through its website. The Company periodically disseminates information through press releases and its annual reports.

Shareholding Pattern As on 31st March, 2021, the shares were held by the promoters in the proportion: GAIL : 70%OIL : 10%NRL : 10%Government of Assam : 10%

Corporate Governance Compliance Certificate AcertificatefromaCompanySecretaryinpracticeregardingcomplianceofconditionsofcorporategovernanceduring2020-21,asperclause8.2.1oftheDPEGuidelinesisannexed.

Secretarial Audit ReportThe Company has carried out the Secretarial Audit for the year under review and the report along withtheexplanationtotheobservationsthereinisannexed.

Code of ConductThe Company has a Code of Conduct for the Board members and the senior management personnel andallthemembersoftheBoardandtheseniormanagementpersonnelhaveaffirmedcomplianceoftheCodeofConductforthefinancialyearendedon31st March, 2021.

DECLARATION

As required by clause 3.4.2 of the DPE Guidelines on Corporate Governance, it is hereby declared that the members of the Board of Directors as well as senior management personnel of the Company towhomtheCodeofConductisapplicablehaveaffirmedcompliancewiththecode.

Sd/- (Reep Hazarika)Date : 19th July, 2021 Managing Director

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Form No. AOC-2(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies

(Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto

1 Details of contracts or arrangements or transactions not at arm’s length basis - NIL

a) Name(s) of the related party and nature of relationship

-

b) Nature of contracts/arrangements/transactions -

c) Duration of the contracts / arrangements/transactions -

d) Salient terms of the contracts or arrangements or transactions including the value, if any

-

e) Justification for entering into such contracts or arrangements or transactions.

-

f) Date(s) of approval by the Board -

g) Amount paid as advances, if any: -

h) Date on which the special resolution was passed in general meeting as required under first proviso to section 188

-

2 Details of material contracts or arrangement or transactions at arm’s length basis

a) Name(s) of the related party and nature of relationship

(A) GAIL (India) Ltd., Holding Company.(B) Oil India Ltd., Investing Company/Venturer(C) Numaligarh Refinery Ltd, Investing Company/Venturer

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b) Nature of contracts/ arrangements/ transactions

(A) Nature of transactions with GAIL

(1) Procurement of Polymer grade Propylene

(2) Marketing Commission to GAIL

(3) Secondment of employees from GAIL

(4) Disaster Recovery (DR) Server charges set up in GAIL Noida Premises.

(5) Provision of Consultancy services by GAIL

(B) Nature of transactions with OIL

(1) Purchase of Natural Gas

(2) Infrastructure Cost payable to OIL

(C) Nature of transactions with NRL

(1) Procurement of Naphtha from NRL

c) Duration of the contracts / arrangements/transactions

(A) Duration of transactions with GAIL1. Procurement of Propylene with GAIL, Pata as per requirement

and on best endeavour basis2. Marketing margin @ 2.4% of net sales value of BCPL products&

by-products for 10 years.3. Arrangement with holding company for secondment of

employees.4. Disaster Recovery Data Centre set up in GAIL Noida Premises.5. Onetime

(B) Duration of transactions with OIL

(1) BCPL procures Natural Gas from OIL based on the agreement entered for supply of natural gas towards feed stock requirement of the Company.

(2) Infrastructure cost to OIL is paid as a part of the project cost.

(C) Duration of transaction with NRL

BCPL procures Naphtha from NRL based on the agreement entered with NRL towards feed stock requirement of the Company

d) Salient terms of the contracts or arrangements or transactions including the value, if any:

A. Salient terms of the arrangements or transactions with GAIL1. Procurement of total 355 MT Propylene from GAIL, Pata

amountingto₹2.94crore2. Marketing commission as per Marketing Agreement totaling to

₹54.27crore.3. Arrangement with holding company for secondment of

employeesamountingto₹7.70crore.4. DR installation configuration and commissioning work

completed.Totalchargesof₹61.00 lac towardsservicechargefor DR server set-up has been invoiced by GAIL.

5. Designandengineeringformodificationwork‘reroutingof24U/G lean gas pipeline for GAIL GDT & hook up for M2 meter of ONGC’ totaling to 8.00 lacs.

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B. Salient terms of the arrangements or transactions with OIL

1. 4,37,051TSCMofNaturalGasfor₹324.92crore.

2. Payment of Infrastructure Cost to OIL as part of project cost ₹20.35crore.

C. Salient terms of the arrangements or transactions with NRL

1. Procurementof1,06,195MTofNaphthafor₹270.56crore.

e) Date(s) of approval by the Board, if any: Not applicable.

f) Amount paid as advances, if any:

-

Sd/-

Dated : 11th August, 2021 (Manoj Jain)Place: New Delhi Chairman

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Annual Report on CSR activities during FY 2020-211. Brief outline on CSR Policy of the Company.

BCPL has a Policy with an objective of taking up socially relevant projects and initiatives that will promote wholesome growth of the society and improve the quality of life of people living in and around BCPL installations. The projects will be undertaken in the area of Schedule VII of Companies Act (Amended).

2. Composition of CSR Committee:Sl. No. Name of Director Designation /

Nature ofDirectorship

Number of meetings of CSR Committee

held during the year

Number of meetings of CSR Committee attended

during the year1 Shri S K Barua Chairman 3 3

2 Shri Reep Hazarika Managing Director 3 3

3 Shri Pruthiviraj Dash Director (Finance) 3 3

4 Shri Saumitra Sarkar Independent Director

3 3

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company :

https://bcplonline.co.in/CSR/Index

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).

NotapplicableasBCPLstartedimplementingCSRfromthefinancialyear2020-21.

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (CorporateSocialresponsibilityPolicy)Rules,2014andamountrequiredforsetoffforthefinancialyear, if any. - NIL as CSR is applicable from current year.

Sl. No. Financial Year Amount available for set-off from preceding financial years (in ₹)

Amount required to be set off for the financial year, if any (in ₹)

6. Averagenetprofitofthecompanyaspersection135(5).

TheBoardshallensurethatthecompanyspends,ineveryfinancialyear,atleasttwopercentoftheaveragenetprofitsofthecompanymadeduringthethreeimmediatelyprecedingfinancialyears,inpursuance of its Corporate Social Responsibility Policy.

Further,forthepurposeofthesection135,the“averagenetprofit”shallbecalculatedinaccordancewithprovisionsofsection198.The“averagenetprofit”incaseofBCPLisprimarilytheProfitBefore

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Tax.Theaverageprofitbeforetaxinlastthreeyears(w.r.t.FY2020-21)is₹575.23croreandaccordingly,twopercentofthesameis₹11.50crore.

(a) Twopercentofaveragenetprofitofthecompanyaspersection135(5)

11.50 Crore

(b) Surplus arising out of the CSR projects or programmes or activitiesofthepreviousfinancialyears.

-

(c) Amountrequiredtobesetoffforthefinancialyear,ifany -(d) TotalCSRobligationforthefinancialyear(7a+7b-7c). 11.50 Crore

7. (a)CSRamountspentorunspentforthefinancialyear:

Total AmountSpent for theFinancial Year.(in ₹)

Amount unspentTotal Amount transferred to Unspent CSR Account as per Section 135(6).

AmounttransferredtoanyfundspecifiedunderSchedule VII as per second proviso to section 135(5).

Amount. Date of transfer.

Name of theFund

Amount. Date of transfer.

2,14,34,345/- 9,35,52,124/- 30.04.2021 NA NA NA

(b)DetailsofCSRamountspentagainstongoingprojectsforthefinancialyear:

1 2 3 4 5 6 7 8 9 10 11

Sl No.

Name of the Project

Item from the list of activities in schedule VII

Local Area (Yes/No).

Location of the project.

Project duration.

Amount allocated for the project (in ₹)

Amount spent in the current financial Year (in ₹).

Amount transferred to Unspent CSR Account for the Section 135(6) (in ₹).

Mode of Implementation

- Direct (Yes/No).

Mode of Implementation - Through Implementing Agency

       State District           Name CSR R

No.1 Infrastructure

Development of Barbaruah PHC

Health & Nutrition

Yes Assam Dibrugarh 3 years 3,20,00,000 64,00,000 2,56,00,000 YesNA  NA

2 Supply of Protective Equipments of DMB Workers

Health & Nutrition

Yes Assam Dibrugarh 3 years 10,00,000 2,00,000 8,00,000 Yes

NA  NA

3 Providing of safe & pure drinking water facility (RO system) at nearby schools

Health & Nutrition

Yes Assam Dibrugarh 2 Years 60,00,000 12,00,000 48,00,000 Yes

NA  NA

4 Upliftment of Emergency Care service of AMCH by providing infrastructural development including equipment & training facilities

Health & Nutrition Yes Assam Dibrugarh 3 Years

1,50,00,000 30,00,000

1,20,00,000 Yes NA  NA

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5 Construction of Toilets at Lejai Higher Secondary School

Promotion of Education Yes Assam Dibrugarh 3 years 3,00,000 60,000 2,40,000 Yes NA  NA

6 Construction of Office Building and Girls Common room, renovation of class room, toilet of Sessa Tiniali Moidamani High /ME School, Lepetkata

Promotion of Education Yes Assam Dibrugarh 3 years 15,00,000 3,00,000 12,00,000 Yes NA  NA

7 Installation of Street lights at West Campus of Dibrugarh University

Promotion of Education Yes Assam Dibrugarh 2 years 10,00,000 2,00,000 8,00,000 Yes NA  NA

8 Providing of Desk-benches at Barbaruah Girls’ High School

Promotion of Education Yes Assam Dibrugarh 2 years 3,00,000 60,000 2,40,000 Yes NA  NA

9 Transportation/other infrastructure including providing of Faculty of for Divyang ITI

Promotion of Education Yes Assam Dibrugarh 2 years

10,00,000 2,00,000

8,00,000 Yes NA  NA

10 Construction of boundary wall of Kotoha Binapani High School

Promotion of Education Yes Assam Dibrugarh 3 years 10,00,000 2,00,000 8,00,000 Yes NA  NA

11 Construction of boundary wall of Barbaruah Jatiya Vidyalaya

Promotion of Education Yes Assam Dibrugarh 3 years 5,00,000 1,00,000 4,00,000 Yes NA  NA

12 Development of Tai Educational and Cultural Centre, Dibrugarh (Construction of Boundary Wall & Meeting Room)

Promotion of Education Yes Assam Dibrugarh 2 years

15,00,000 3,00,000

12,00,000 Yes NA  NA

13 Infrastructure development of Dibrugarh Govt. Boys HS School

Promotion of Education Yes Assam Dibrugarh 2 years 15,00,000 3,00,000 12,00,000 Yes NA  NA

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14 Construction of Barbaruah Market (Initiative to create a model market complex) including provision of an Auditorium.

Swachhata & Sanitization Yes Assam Dibrugarh 3 years 1,75,00,000 35,00,000 1,40,00,000 Yes NA  NA

15 Construction of Public Toilets in Bogibeel T point on NH 37/52 junction

Swachhata & Sanitization Yes Assam Dibrugarh 2 years

15,00,000 3,00,000

12,00,000 Yes NA  NA

16 Construction of Boundary Wall with crematorium & waiting shed at Bolai Public Cremation ground

Swachhata & Sanitization Yes Assam Dibrugarh 3 years

8,00,000 1,60,000

6,40,000 Yes NA  NA

17 Construction of Waiting Shed with Fire Place at Bura Hazar Smashan under Bura Hazar Konwar Gaon

Swachhata & Sanitization Yes Assam Dibrugarh 3 years

8,00,000 1,60,000

6,40,000 Yes NA  NA

18 Upgradation of the Lepetkata Public Cremation ground including construction of boundary wall, waiting shed etc.

Swachhata & Sanitization Yes Assam Dibrugarh 3 years

8,00,000 1,60,000

6,40,000 Yes NA  NA

19 Cleaning & Maintenance of Sukafa Bhawan

Swachhata & Sanitization Yes Assam Dibrugarh 2 years

5,00,000 1,00,000

4,00,000 Yes NA  NA

20 Upgradation of drainage system near Lepetkata TE Labour line

Swachhata & Sanitization Yes Assam Dibrugarh 2 years

10,00,000 2,00,000

8,00,000 Yes NA  NA

21 Installation of Organic Compost System at Barbaruah

Swachhata & Sanitization Yes Assam Dibrugarh 3 years

5,86,469 1,17,294

4,69,175 Yes NA  NA

22 Infrastructure development of Chowkidingee Cremation Ground

Swachhata & Sanitization Yes Assam Dibrugarh 2 years

15,00,000 3,00,000

12,00,000 Yes NA  NA

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23 Proposal for conducting skill cum entrepreneur development programme

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 2 years 46,00,000

9,20,000

36,80,000 Yes NA  NA

24 Cluster development for alternative livelihood promotion (1 cluster)

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 2 years 15,00,000

3,00,000

12,00,000 Yes NA  NA

25 Commercial Broiler Farming (Rehabilitation program of affected people)

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 2 years 6,00,000

1,20,000

4,80,000 Yes NA  NA

26 Project on Commercial Diary and Piggery Farming

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 2 years 10,00,000

2,00,000

8,00,000 Yes NA  NA

27 Project on Commercial Mushroom Cultivation for Livelihood and Nutrition

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 2 years 15,00,000

3,00,000

12,00,000 Yes NA  NA

28 Construction of Building of Piggery Farm

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 3 years 10,00,000

2,00,000

8,00,000 Yes NA  NA

29 Proposal for setting-up of weaving centre

Skill enhancement/

Alternate livelihood

promotion/ sustainable

development

Yes Assam Dibrugarh 3 years 10,00,000

2,00,000

8,00,000 Yes NA  NA

30 Repairing of road of Borpathar Kakati Gaon main road.

Rural Development

ProjectsYes Assam Dibrugarh 3 years

30,00,000 6,00,000

24,00,000 Yes NA  NA

31 Lighting Arrangements in the NH-37 and connecting sub-ways to NH-37 in the nearest areas of BCPL Plant, Lepetkata

Rural Development

ProjectsYes Assam Dibrugarh 2 years

10,00,000 2,00,000

8,00,000 Yes NA  NA

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32 Construction of Pavilion and other infrastructure development of Lepetkata Anchalik Sports Association

Rural Development

ProjectsYes Assam Dibrugarh 3 years

15,00,000 3,00,000

12,00,000 Yes NA  NA

33 Construction of Cultural Centre at Lepetkata

Rural Development

ProjectsYes Assam Dibrugarh 2 years

10,00,000 2,00,000

8,00,000 Yes NA  NA

34 Conservation of Historical Monuments near Barbaruah/Lepetkata area

  Yes Assam Dibrugarh 3 years 15,00,000

3,00,000

12,00,000 Yes NA  NA

35 Organising Periodical health camps andDistribution of medicines among flood affected person at nearby villages.

Health & Nutrition Yes Assam Dibrugarh 3 Years 50,00,000 77,051 49,22,949 Yes NA  NA

Total 11,17,86,469 2,14,34,345 9,03,52,124   NA  NA

(c)DetailsofCSRamountspentagainstotherthanongoingprojectsforthefinancialyear: NIL

01 02 03 04 05 06 07 08Sl No. Name of

the ProjectItem from the list of

activities in schedule VII

Localarea

(Yes/No).

Location of the project.Project

duration.

Amount spent for the project (in ₹).

Mode of implementationon - Direct (Yes/No).

Mode ofImplementation -

Direct(Yes/No).

Mode of Implementation -Through Implementing

AgencyYes State District NIL Name CSR Registra-

tion Number

(d) Amount spent in Administrative Overheads: NIL (20 Lakhs approved)

(e) Amount spent on Impact Assessment, if applicable:NIL (12 Lakhs Projected & approved )

(f) Total amount spent for the Financial Year = 2,14,34,345/-

(8b+8c+8d+8e)

(g)Excessamountforsetoff,ifany:-None.

Sl. No. Particular Amount (in ₹)i) Twopercentofaveragenetprofitofthecompanyaspersection135(5) -ii) Total amount spent for the Financial Year -iii) Excessamountspentforthefinancialyear[(ii)-(i)] -iv) Surplus arising out of the CSR projects or programmes or activities of the pre-

viousfinancialyears,ifany-

v) Amountavailableforsetoffinsucceedingfinancialyears[(iii)-(iv)] -

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8. (a)DetailsofUnspentCSRamountfortheprecedingthreefinancialyears:NA

01 02 03 04 05 06Sl. No. Preceding

financialyear

Amount transferred to Unspent CSR

Account under section 135 (6)

(in₹)

Amount spentin the

reporting Financial Year

(in₹)

Amount transferred to any fund specifiedunderScheduleVIIasper

section 135(6), if any

Amountremaining to be

spent in succeedingfinancialyears.(in₹)

(b)DetailsofCSRamountspentinthefinancialyearforongoingprojectsoftheprecedingfinancialyear(s): NA

(1) (2) (3) (4) (5) (6) (7) (8) (9)Sl. No. Project ID Financial

Year inwhich the

project wasCommenced.

ProjectDuration.

Amount transferred to any

fund specified under Schedule

VII as per section 135(6), if

any

Amountremaining tobe spent insucceeding

financialyears. (in ₹)

Amountspent on the

project inthe reporting

FinancialYear (in ₹)

Cumulativeamount

spentat the end of

reportingFinancial

Year. (in ₹)

Status of the

project -Completed/Ongoing

9. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquiredthroughCSRspentinthefinancialyear(asset-wisedetails):

(a) Date of creation or acquisition of the capital asset(s).

(b) Amount of CSR spent for creation or acquisition of capital

(c) Details of the entityorpublic authorityorbeneficiaryunderwhosename such capital asset isregistered, their address etc.

(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset).

The detail of asset created cannot be provided at this stage as the projects are ongoing.

Once completed, the schedule of assets will be provided.

10.Specifythereason(s),ifthecompanyhasfailedtospendtwopercentoftheaveragenetprofitaspersection 135(5).

Companyhasnotfailedinspendingtherequiredpercentageoftheaveragenetprofit.Alltheprojectsare in progress and spread over three years. The unspent amount has been kept in a separate designated account as per the requirement of the Companies Act, 2013.

Sd/- Sd/- (Reep Hazarika) (S K Barua) Managing Director Chairman of the Committee of the Board on Sustainability & CSR

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To, The Members,Brahmaputra Cracker and Polymer Limited 1st Floor, House No. 6, Bhuban Road,Uzanbazar, Guwahati, Assam, PIN-781001

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Brahmaputra Cracker and Polymer Limited (hereinafter called the “Company”) having CIN U11101AS2007GOI008290. Secretarial Audit was conducted in a manner that provided me a reasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.

BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsand authorized representatives during the conduct of Secretarial audit, I hereby report that in my opinion, thecompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31st March, 2021 complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanisminplacetotheextent,inthemannerandsubjecttotheobservationsmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedon31stMarch,2021accordingtotheprovisionsof:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Memorandum & Articles of the Association

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) Compliances/processes/systemsunderotherspecificapplicablelaws(asapplicabletotheindustry),as listed below, to the Company are being verified on the basis of periodic certificate/internalcompliance system submitted to the Board of the Company;

(v) TheLawsidentifiedbythemanagementandconfirmedasspecificallyapplicabletotheCompany:1. The Petroleum Act 1934;2. Petroleum and Minerals Pipelines(Acquisition of Rights of User Inland) Act 1962;3. The Oil Industry (Development) Act 1974;4. ExplosivesAct1884;5. The Oil Fields (Regulation & Development) Act 1948;6. Petroleum and Natural Gas Regulatory Board Act 2006;

(vi) IhavealsoexaminedcompliancewiththeapplicableclausesoftheSecretarialStandardsissuedbyThe Institute of Company Secretaries of India with respect to Board & General Meetings.

FORM NO. MR-3

Secretarial Audit ReportFOR THE FINANCIAL YEAR ENDED 31st MARCH 2021

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

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During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:

a) The company has only one independent Director as against the requirement of two of its Board Members. Further, the company does not have woman Director on the Board.

b) The company could not hold separate meeting of independent Directors as there is only one independent Director in the Company.

c) The composition of the Audit Committee did not have majority of its members as independent Directors.

I further report that:The Board of Directors of the Company is not duly constituted as there is only one independent Director on the Board. The company represented that as the company is a Central PSE, the appointment of independent Directors is made by the Central Government and the appointment of second independent Director is awaited. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Being a Public Sector Enterprise, the DPE Guidelines on Corporate Governance for Central Public Sector Enterprises, 2010 issued by Department of Public Enterprises, Govt. of India is also applicable to the company. It is observed that the number of nominee Directors in the Board of Company is not as per the DPE guidelines. The Company represented that the Board of Directors has requested the Government for a special dispensation to retain the present constitution of the Board in the interest of the company.

Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agendaweresentat leastsevendaysinadvance,exceptincaseofemergentBoardmeetingswhichareheld with the approval of requisite Directors as per Articles of Association and also in accordance with the provisionsoftheCompaniesAct,2013andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

The decisions at the Board meetings as represented by the management were carried out unanimously as recorded in the minutes of the meetings of the Board of Directors and committee of the Board as the case may be.

I further report that there are adequate systems and processes in the company commensurate with the size and operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

Sd/-Date: 02.06.2021 (CS UJWAL KUMAR KALITA) Place: Guwahati Company Secretary in Practice [ACS NO: 23610, C.P.NO: 20607]

UDIN: A023610C000409479

Thisreportistobereadwithourletterofevendatewhichisannexedasannexureandformsanintegralpart of this report.

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Annexure A

(TO SECRETARIAL AUDIT REPORT OF BRAHMAPUTRA CRACKER AND POLYMER LIMITED FOR THE FINANCIAL YEAR 2020-21)

To, The Members Brahmaputra Cracker and Polymer Limited1st Floor, House No. 6, Bhuban Road,Uzanbazar, Guwahati, Assam - 781001

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethatthe processes and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books ofAccounts of the company.

4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofprocedures on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of theefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

Date: 02.06.2021 Sd/-Place: Guwahati (CS Ujwal Kumar Kalita) Company Secretary in Practice [ACS NO: 23610, C.P.NO: 20607]UDIN: A023610C000409435

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Explanation of the Board to the observations in the Secretarial Audit Report 2020-21

Observation of the Secretarial Auditor Explanation of the Board

(i) The company has only one independent Director as against the requirement of two of its Board Members. Further, the company does not have woman Director on the Board.

During the year, there was only one Independent Director on the Board of Directors. Appointment of a second Independent (Woman) Director has been requested and remains pending with the Government of India and hence the position of Independent Director & Woman Director was vacant.

(ii) The company could not hold separate meeting of independent Directors as there is only one independent Director in the Company.

There was only one Independent Director in the Company during the year, as appointment of second Independent Director has been in process with the Government and therefore the company could not validly hold a separate meeting of the Independent Directors.

(iii) The composition of the Audit Committee did not hove majority of its members as independent Directors.

There was only one Independent Director in the Company during the year and appointment of second Independent Director by the Government of India was awaited.

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To, The Members,Brahmaputra Cracker and Polymer Limited 1st Floor, House No. 6, Bhuban Road,Uzan Bazar, Guwahati, Assam, PIN-781001

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyBrahmaputra Cracker and Polymer Limited (hereinafter referred as "the Company") for the year ended 31st March 2021, as stipulated in the Guidelines on Corporate Governance for the Central Public Sector Enterprises issued by the Department of Public Enterprises (DPE), Government of India in May 2010.

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examinationwas limited toprocedures and implementation thereof, adoptedby theCompany forensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expressionofopiniononthefinancialstatementsoftheCompany.

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertify that the Company has complied with the conditions of Corporate Governance as stipulated in theabovementionedDPEguidelinesexcept:

a) The composition of Company's Board lacks the required number of Independent Directors.

b) The number of nominee directors in the Board of Company is not as per the DPE guidelines issued by Department of Public Enterprises, Government of India.

c) The composition of the Audit Committee does not have two-third of its members as independent Directors.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of theCompany.

Sd/-Date: 02.06.2021 (CS UJWAL KUMAR KALITA) Place: Guwahati Company Secretary in Practice [ACS NO: 23610, C.P.NO: 20607]

UDIN: A023610C000409479

Corporate Governance Compliance Certificate

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Independent Auditor's Report

To The Members ofBrahmaputra Cracker and Polymer Limited1st Floor, House No. 6, Bhuban Road,Uzanbazar,Guwahati – 781001, Assam

Report on the Audit of the Standalone Financial Statements1. Opinion

A. We have audited the accompanying standalone Ind AS Financial Statements of BRAHMAPUTRA CRACKER AND POLYMER LIMITED (“the Company”), which comprises the Balance Sheet as at 31st March, 2021, the Statement of Profit and Loss Account (including Statement of OtherComprehensive Income), Statement of Change in Equity, the Cash Flow Statement for the year thenended,andnotestotheFinancialStatementsincludingasummaryofSignificantAccountingPoliciesandotherexplanatoryinformation.

B. Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaid Standalone Ind AS Financial Statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2021,itsprofitincludingothercomprehensiveincome,changeinequity,anditscashflowsforthe year ended on that date.

2. Basis for Opinion

WeconductedourauditinaccordancewiththeStandardsonAuditing(SAs)specifiedundersection143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the Financial Statements under the provisions of the Companies Act, 2013 and the Rules thereunder, andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirementsandtheCodeofEthics.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovide a basis for our opinion.

3. Key Audit MattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditoftheFinancialStatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sl. No. Key Audit Matter Audit Response on Key Audit Matter

1. Pursuant to implementation of 3rd Pay Revision Committee’s recommendation regarding affordability of Pay revision, the Company has evaluated impact of increaseinpay&otherbenefitsforBoardandbelowBoard level officers. The Company has evaluatedthat on account of recognition of feedstock subsidy

Our audit procedures include the following:

1. We have obtained the copy of the DPE guideline.

2. We have obtained the copy of application submitted Ministry of Petroleum & Natural Gas (MoPnG) by the Management.

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fromFY 2015-16, profitability of the Company hasimprovedandtheCompanyismakingprofitfor3rdconsecutive year and hence, vide DPE guideline, BCPL’s position in respect of affordability clause has improved further. Considering this, the Company has further approached to the Ministry of Petroleum & Natural Gas (MoPnG) vide letter dated 14.08.2020 with revised proposal for implementation of 3rd Pay Revision in the Company, and accordingly the Company has made provision of ₹23.10 Crorerelating to the F.Y 2020-21 for pay revision.

{Refer Note 26(i)}

3. We have examined the process of evaluation ofaffordability by the Management as recommended by the 3rd Pay Revision Committee.

4. We performed testing of the arithmetical accuracy of the required calculation of all benefits on test check basisand also validated the appropriateness of disclosure in this regard.

2. Further, the Company has made provision on the basis of estimation amounting to ₹4.67Cr towardsPerformance Related Pay (PRP) payable to the executivesandnon-executivesonrevisedscalebasedon 3rd PRC.

{Refer Note 26(i)}

Our audit procedures include the following:

1. We have obtained the copy of Circular relating to Methodology for Calculation of Performance Related Pay (PRP).

2. We have examined the process of evaluation by theManagement as recommended by the 3rd Pay Revision Committee.

3. We performed testing of the arithmetical accuracy of the requiredcalculationofallbenefitsontestcheckbasisandalso validated the appropriateness of disclosure in this regard.

4. Management’s Responsibility for the Financial Statements:

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the CompaniesAct,2013withrespecttothepreparationofthesefinancialstatementsthatgiveatrueand fair view of the financial position, financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Accounting Standards specifiedunderSection133of theAct, readwithRule7of theCompanies (Accounts)Rules, 2014.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracy and completeness of the accounting records, relevant to the preparation and presentation ofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company’s financial reportingprocess.

5. Auditor’s Responsibility:

A. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

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but is not a guarantee that an audit conducted in accordance with SAs will always detect a materialmisstatementwhen it exists.Misstatements can arise from fraud or error and areconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluence the economic decisions of users taken on the basis of these financial statements. Our responsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

B. AspartofanauditinaccordancewithSAs,weexerciseprofessionaljudgementandmaintainprofessional scepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompaniesAct,2013,wearealsoresponsibleforexpressingouropiniononwhetherthe Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmay cast significant doubt on theCompany’sability tocontinueasagoingconcern. Ifweconclude thatamaterialuncertaintyexists,we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

C. Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Financial Statements.

D. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

E. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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6. Emphasis of Matter:

We draw attention to the following matters relating to the financial statements:

1. Weinviteattentiontothe fact thatouropinionexpressed inthepresentreport isbasedonthelimited information, facts, reports and inputs made available to us by the management through digital/electronic medium. We wish to highlight that due to COVID-19 pandemic and consequential partial lockdown and other restrictions imposed by the Government and local administration which have induced restriction on physical movement and strict timelines, the audit team could not visit the Company for undertaking the required audit and hence, the audit processes were carriedoutbasedontheremoteaccesstotheextentavailable/feasible.

2. DuetotheCOVID-19relatedlock-down,wewerenotabletoparticipateinthephysicalverificationof inventory that was carried out by the management as at the end of 3rd quarter. Consequently, wehaveperformedalternateprocedurestoaudittheexistenceofinventoryaspertheguidanceprovidedinSA501“AuditEvidence-SpecificConsiderationsforSelectedItems”andhaveobtainedsufficientappropriateauditevidencetoissueourunmodifiedopinionontheseStandaloneFinancialStatements.

3. We invite attention to Note No. 23B(iii) to thestandalone financial statementregardingsubsidiesclaimed under various scheme of North East Industrial & Investment Promotion Policy (NEIIPP), the CompanyhaswrittenoffInterestSubsidyamountingto₹14.35Crorebasedonthecommunicationfrom Industries Department. As per the communication received by the Company, on account of changes incorporated in the NEIIPP scheme during November’ 2016, the claims towards Interest Subsidy,madebyBCPLstandsin-eligible.Further,consideringthesame,aliabilityof₹4.71Crorehasbeen created for refunding interest subsidy previously allowed to BCPL for the FY 2016-17.

4. We invite attention to Note No. 25tothestandalonefinancialstatementregardingtradepayablein IndAS financialstatement,onaccountofshortfallgasvalueasperGasSupplyandPurchaseAgreement (GSPA) between M/s OIL and BCPL, the Company (BCPL) has considered ₹ 35.44Crore as ‘other income’ out of the total retention amount based on settlement of dispute by a joint committee of both M/s OIL and BCPL.

However,ouropinionisnotmodifiedinrespectofabovematters.

7. Other Matter

The figuresof theStandaloneFinancialStatement for thecorrespondingquarterended31st March, 2021arethebalancingfiguresbetweentheannualauditedfiguresfortheyearthenendedandtheyear-to-datefiguresforthenine(9)monthsperiodended31st December, 2020. We have not issued a separate limited review report for the last quarter ended 31st March, 2021.

However,ouropinionisnotmodifiedinrespectofabovematter.

8. Report on Other Legal and Regulatory Requirements1. Section 149(4) of the Companies Act, 2013 requires the Company to have at least two independent

Directors, however, the Company has only one independent director. Further, the Company does not have woman Director on the Board as required by second proviso to section 149(1) of the Companies Act, hence, the Company has defaulted in complying with the provisions of Companies Act.

2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of The Companies Act 2013, we give in the “Annexure-A”,astatementonthemattersspecifiedinparagraphs3and4oftheOrdertotheextentapplicable.

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For RKP ASSOCIATES Chartered Accountants

Sd/- (CA. RAVI KR. PATWA) PARTNER MRN. 056409Dated at Silchar FRN. 322473EThe 25th day of May, 2021 UDIN – 21056409AAAAAT4320

3. As required by Comptroller and Auditor General of India through directions/sub-directions issued under Section 143 (5) of the Companies Act 2013, on the basis of written representation received fromthemanagement,wegiveourreportonthematterspecifiedinthe“Annexure –B” attached

4. As required by section 143(3) of the Act, we report that:a. Wehavesoughtandobtainedall the informationandexplanationswhichto thebestofour

knowledge and belief were necessary for the purposes of our audit; b. In our opinion proper books of account as required by law have been kept by the Company so

farasappearsfromourexaminationofthosebooks;c. TheBalanceSheet,StatementofProfitandLoss(includingStatementofOtherComprehensive

Income), Statement of Change in Equity, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d. InouropiniontheaforesaidstandaloneIndASfinancialstatementscomplywiththeIndianAccountingStandards(IndAS)specifiedundersection133oftheAct,readwiththeCompanies(Indian Accounting Standards) Rules, 2016 as amended;

e. Pursuant to theNotificationNo.GSR463(E)dated5th June2015 issuedby theMinistryofCorporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of the Companies Act, 2013, are not applicable to the Company, being a Government Company;

f. WithrespecttotheadequacyoftheinternalfinancialcontroloverfinancialreportingoftheCompany and the operating effectiveness of such control, refer to our separate report in “Annexure–C”tothisreport;

g. Pursuant to theNotificationNo.GSR463(E)dated5th June2015 issuedby theMinistryofCorporate Affairs, Government of India, provisions of Section 197 of the Companies Act, 2013, are not applicable to the Company, being a Government Company; and

h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformationandaccordingtotheexplanationsgiventous:i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonitsfinancialposition

initsstandaloneIndASfinancialstatements–ReferNote22&30(b)tothefinancialstatements;

ii. The Company had not entered into any long-term contracts including derivativecontractsforwhichtherewouldhavebeenanymaterialforeseeablelosses;

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

| 69 |

ANNEXURE - A TO THE INDEPENDENT AUDITOR’S REPORTReferred to in paragraph 1 to “Report on Other legal and regulatory requirements” of the Independent Auditors’ Report of even date to the members of BRAHMAPUTRA CRACKER AND POLYMER LIMITED on the Standalone Ind AS Financial Statements for the year ended 31st March, 2021

I. a) The Company has maintained proper records showing full particulars including quantitative detailsandsituationoffixedassets.

b) As explained to us, there is a regular programme of physical verification of Fixed Assets bythe management which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. As informed to us no material discrepancies were noticed on such verification.

c) According to the information and explanations given by the management, title deeds ofimmovableproperties areheld in thenameof theCompanyexcept for the cases asdetailedbelow:

Description of Asset Area (in Bigha) Gross Block as on 31.03.2021 (₹ In Crore)

Net Block as on 31.03.2021 (₹ In Crore)

Freehold Land 190 3.87 3.87Leasehold Land 520 5.54 4.61

II) a) Asexplainedtous,theinventoryhasbeenphysicallyverifiedbythemanagementatreasonableintervals during the year.

b) Inouropinion,theproceduresofphysicalverificationofinventoriesfollowedbythemanagementare reasonable and adequate having regard to the size and the nature of its business.

III) Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationofthebooksofaccount,theCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,firms,limited liability partnership or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

IV) In our opinion and according to the information and explanations given to us, the Company hascomplied with the provision of section 185 and 186 of the Companies Act, 2013 in respect of loans/investment/guarantee/security granted during the year.

V) Inouropinionandaccordingtotheinformationandexplanationgiventous,theCompanyhasnotaccepted any deposits from public. Therefore, the provisions of Para. 3(v) of the CARO 2016 are not applicable to the Company.

VI) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost accounts & records havebeenmadeandmaintained.However,wehavenotmadeadetailedexaminationofthesame,asweunderstandthatthesaidexaminationwillbecarriedoutduringthecourseofCostAudit.

VII) a) On the basis of test check carried out during the course of audit, we are of the opinion that, the Company is regular in depositing with appropriate authorities undisputed statutory dues includingProvidentFund,Employees’StateInsurance,Income-tax,SalesTax,ServiceTax,DutyofCustom,DutyofExcise,ValueAddedTax,Goods&ServicesTax,Cessandotherstatutoryduesapplicable to it.

Accordingtoinformationandexplanationsgiventous,noundisputedamountpayableinrespectofProvidentFund,IncomeTax,ServiceTax,Goods&Servicetax,CustomDuty,Cessandotherstatutory dues were in arrears as at 31stMarch,2021foraperiodofmorethansixmonthsfromthe date they became payable.

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b) Accordingtotheinformationandexplanationsgiventous,therearenodisputedstatutorydues,which have not been deposited/ short deposited as on 31st March, 2021, hence provision of this para is not applicable to the Company.

Name of Statute Nature Period (A.Y) Forum where the dispute is

pending

Gross Disputed Amount

(` in Crore)

TDS Credit(` in Crore)

Net Disputed Amount

(` in Crore)NIL

VIII)Accordingtoinformationandexplanationsgiventous,theCompanyisregularinrepaymentofloansorborrowingsfromanyfinancialinstitutions,banks,governmentordebenturesholdersduringtheyear.

IX) Accordingto informationandexplanationsgivenby themanagement, theCompanyhasnotraisedanymoneys by way of initial public offer or further public offer including debt instruments; however, the term loan taken by the Company were applied for the purpose for which it was taken during the year.

X) Based upon the audit procedure performed for the purpose of reporting the true and fair view of the standalone financial statements and according to the information and explanations given by themanagement, we report that no fraud by the Company and no material fraud on the Company by the officersandemployeesoftheCompanyhasbeennoticedorreportedduringtheyear.

XI) As per notification no. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs,Government of India, Section 197 is not applicable to the Government Companies. Accordingly, provisions ofclause3(xi)oftheOrderarenotapplicabletotheCompany.

XII) In our opinion and according to information & explanations given to us, the Company is not a NidhiCompany.Therefore,theprovisionsofPara.3(xii)oftheOrderarenotapplicabletotheCompany.

XIII)Accordingtoinformation&explanationsgivenbythemanagement,andonthebasisofauditprocedureperformed for the purpose, we are of the opinion that, transactions with the related parties are in compliance with section 177 and section 188 of Companies Act, 2013, wherever applicable, and the details have been disclosed in the notes to the Standalone Financial Statements, as required by the applicable Accounting Standards.

XIV) Accordingtoinformation&explanationsgiventousandonanoverallexaminationoftherecords,weareofthe view that, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under Para.3(xiv)isnotapplicabletotheCompany.

XV) Accordingtoinformation&explanationsgiventousandbasedonourexaminationoftherecordsoftheCompany, the Company has not entered into any non-cash transactions with directors or persons connected with them.

XVI) In our opinion, the Company is not required to be registered under section 45 IA of the Reserve Bank of IndiaAct,1934andaccordingly, theprovisionsofPara.3(xvi)of theOrderarenotapplicable totheCompany.

For RKP ASSOCIATES Chartered Accountants

Sd/- (CA. RAVI KR. PATWA) PARTNER MRN. 056409Dated at Silchar FRN. 322473EThe 25th day of May, 2021 UDIN – 21056409AAAAAT4320

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ANNEXURE–B TO THE INDEPENDENT AUDITOR’S REPORT

Report Pursuant to Directions issued by the office of C & AG under sub-section 5 of Section 143 of the Companies Act, 2013 (‘the Act’)

TheAnnexurereferredtoinPointNo.2ofPara8,“ReportonOtherlegalandregulatoryrequirements”in the Independent Auditors’ Report to the members of the BRAHMAPUTRA CRACKER AND POLYMER LIMITED(“theCompany”)ontheIndASfinancialstatementsfortheyearended31stMatch2021,wereport that:

Sl. No.

Directions Remarks Impact on FS

1. Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financialimplications, if any, may be stated.

The Company maintain its Books of Account on IT System, SAP, which is an ERP system for processing accounting transactions. All accounting transactions are processed in accounts maintained on SAP. We did not notice any transaction which was processed outside the IT System.

NIL

2. Whether there is any restructuring of an existingloanorcasesofwaiver/writeoffofdebts /loans/interest etc. made by a lender to the company due to the company’s inability to repay the loan? If yes, the financialimpactmaybestated.

Whether such cases are properly accounted for? (In case, lender is a Government company, then this direction is also applicable for statutory auditor of lender company).

As per the information and explanationsobtained from the management, there were no restructuring of any existing loan or cases ofwaiver/write off of debts /loans/interest etc. made by a lender to the Company due to the company’s inability to repay the loan.

NIL

3. Whether funds received/receivable for specific schemes from central/ stateagencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation.

The Company has received various grants as Capital Subsidy, Feedstock Subsidy, Insurance/Freight subsidy from NEIIPP. According to the information and explanations given to us andas represented by the Management and based on our examination of the books and recordsof the Company, these have been used for the purpose of which these were given. We have not come across any deviation.

NIL

For RKP ASSOCIATES Chartered Accountants

Sd/- (CA. RAVI KR. PATWA) PARTNER MRN. 056409Dated at Silchar FRN. 322473EThe 25th day of May, 2021 UDIN – 21056409AAAAAT4320

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ANNEXURE–C TO THE INDEPENDENT AUDITOR’S REPORTReport on the Internal Financial Controls under Clause(i) of sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

Wehaveaudited the internal financial controlsover financial reportingofBRAHMAPUTRA CRACKER AND POLYMER LIMITED (‘the Company’) as of 31st March’ 2021 in conjunction with our audit of the standalonefinancialstatementsoftheCompanyfortheyearendedonthedate.

Management’s Responsibility for Internal Financial Controls:TheCompany’smanagement isresponsible forestablishingandmaintaining internal financialcontrolsbasedon the internal controlover financial reportingcriteriaestablishedby theCompanyconsideringthe essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). Theseresponsibilitiesincludethedesign,implementationandmaintenanceofadequateinternalfinancialcontrols thatwere operating effectively for ensuring the orderly and efficient conduct of its business,including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation ofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility:Our responsibility is to express anopinionon theCompany’s internal financial controls over financialreporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ‘Guidance Note’) and the Standards on Auditing, asspecifiedundersection143(10)of theCompaniesAct,2013, to theextentapplicable toanauditofinternal financial controls and, both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and plan and perform theaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsoverfinancialreporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesign and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolsystemsoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting:ACompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternal purposes in accordancewith generally accepted accounting principles. A Company’s internalfinancial control over financial reporting includes those policies and procedures that (1) pertain tothemaintenance of records that, in reasonable detail, accurately and fairly reflect the transaction and

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dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded asnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresoftheCompanyarebeingmadeonlyinaccordancewithauthorizations of the Management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assetsthatcouldhaveamaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting:Becauseof the inherent limitationsof internal financialcontrolsover financial reporting, including thepossibility of collusion or improper management override of controls, material misstatements due to errororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliance with the policies or procedures may deteriorate.

OpinionIn our opinion, the Company has, in all material respects, an adequate Internal Financial Controls system over Financial Reporting and such Internal Financial Controls over Financial Reporting were operating effectively as at 31stMarch’2021,basedontheinternalcontroloverfinancialreportingcriteriaestablishedby the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Our above opinion on Internal Financial Control of the Company is subject to our comment on impact of COVID-19 pandemic as detailed in Point No. 1 of Para 6 (Emphasis of Matter) of ‘Independent Auditor’s Report’.

For RKP ASSOCIATES Chartered Accountants

Sd/- (CA. RAVI KR. PATWA) PARTNER MRN. 056409Dated at Silchar FRN. 322473EThe 25th day of May, 2021 UDIN – 21056409AAAAAT4320

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Balance Sheetas at 31st March, 2021

` in crore

Particulars

NoteNo.

As at 31 March

2021(Audited)

As at 31 March

2020(Audited)

ASSETSNon Current Assets Property, Plant and Equipment 2 6,873.18 7,221.00 Capital work-in-progress 2 26.27 11.47 Intangible assets 3(a) 9.10 10.54 Right-of-use assets 3(b) 223.68 234.44 Financial Assets - Others 4(e) 391.80 670.66 Other Non Current Assets (Non Financial) 5 0.45 0.03

Subtotal (A) 7,524.48 8,148.14

Current Assets Inventories 6 357.39 489.24 Financial Assets - Trade receivables 4(b) 67.72 2.87 - Cash and Cash Equivalents 4(d) 1,340.57 42.92 - Others 4(e) 1,131.29 1,852.62 Other Current Assets (Non Financial) 5 291.68 85.00

Subtotal (B) 3,188.65 2,472.65

Total Assets (A+B) 10,713.13 10,620.79

EQUITY AND LIABILITIESEQUITY Equity Share Capital 7 1,417.67 1,417.67 Other Equity 8 1,393.59 655.38

Subtotal (C) 2,811.26 2,073.05

LIABILITIESNon Current Liabilities Financial Liabilities - Borrowings 9 1,935.81 2,351.12 - Other Financial Liabilities 11 0.28 1.60 - Provisions 12 10.70 8.43 - Other Non Current Liabilities 13 3,968.24 4,179.61 DeferredTaxLiabilities(Net) 14 246.98 167.64

Subtotal (D) 6,162.01 6,708.40

| 75 |

Sd/- Sd/- Sd/- (Reep Hazarika) (Pruthiviraj Dash) (Ruli Das Sen) Managing Director Director (Finance) & CFO Company Secretary DIN: 08667195 DIN: 08253888 M. No. F4012

As per our separate report on Even Date For RKP Associates Chartered Accountants, FRN No. 322473E

Sd/- (Ravi Kumar Patwa)Place : Dibrugarh / Guwahati / Silchar PartnerDate : 25th May, 2021 Membership No. 056409

` in crore

Particulars

NoteNo.

As at 31 March

2021(Audited)

As at 31 March

2020(Audited)

Current Liabilities Financial Liabilities - Borrowings 9 210.23 423.12 - Trade payables - Due to MSME Vendors 10(a) 10.48 2.13 - Due to Others 10(b) 111.07 147.97 - Other Financial Liabilities 11 749.01 783.23 - Provisions 12 442.59 263.56 - Other Current Liabilities 13 216.48 219.34

Subtotal (E) 1,739.86 1,839.34 Total Equity and Liabilities (C+D+E) 10,713.13 10,620.79

Accounting Policy 1

Note No. 1 to 44 forms integral part of Financial Statements.

| 76 |

Statement of Profit and Lossfor the year ended 31st March, 2021

` in crore

Sr. No. Particulars Note No.

For the Year Ended

31-Mar-21(Audited)

For the Year Ended

31-Mar-20(Audited)

I. Revenue from Operations 15 2,902.62 2,731.38 II. Other Income 16 536.89 216.27 III Total Revenue (I + II) 3,439.51 2,947.65 IV EXPENSES

Cost of raw material consumed 17 1,217.71 1,746.22 Change in Inventory of Finished Goods & WIP 126.10 (102.50)Employeebenefitsexpenses 18 161.89 171.03 Finance costs 20 235.32 252.43 DepreciationandAmortizationexpense 19 392.68 390.85 Otherexpenses 21 295.36 347.58 Total expenses (IV) 2,429.06 2,805.61

V Profit/(loss) before Exceptional Item & Tax (III-IV) 1,010.45 142.04 VI Exceptional Items - 1,705.35 VII Profit/(loss) before Tax (V+VI) 1,010.45 1,847.39 VIII Tax expense:

CurrentTax 190.64 - DeferredTax 79.91 339.79

IX Profit/(Loss) for the period (VII- VIII) 739.90 1,507.60 Other Comprehensive income - -

X Items that will not be reclassified to profit or lossChanges in fair value of FVOCI equity instruments - - Remeasurementofpost-employmentbenefitobligations (2.26) (1.99)Incometaxrelatingtotheseitems 0.57 0.50 Other comprehensive income net of tax (X) (1.69) (1.49)

XI Total comprehensive income (IX + X) 738.21 1,506.11 XII Earnings per equity share:( in `)

Basic 5.22 10.63 Diluted 5.22 10.63

Note No. 1 to 44 forms integral part of Financial Statements.

Sd/- Sd/- Sd/- (Reep Hazarika) (Pruthiviraj Dash) (Ruli Das Sen) Managing Director Director (Finance) & CFO Company Secretary DIN: 08667195 DIN: 08253888 M. No. F4012 As per our separate report on Even Date For RKP Associates Chartered Accountants, FRN No. 322473E

Sd/- (Ravi Kumar Patwa)Place : Dibrugarh / Guwahati / Silchar PartnerDate : 25th May, 2021 Membership No. 056409

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Statement of Changes in Equityfor the period ended 31st March 2021

(a) Equity Share Capital Number (in crore) Amount ` in crore

EquitySharesof₹10eachissued,subscribedandfullypaid

As at 31st March 2020 141.77 1,417.67

Issue of Share Capital - -

Issued, subscribed and fully paid up at Closing 141.77 1,417.67

For the year ended 31st March 2021:` in crore

Attributable To The Equity Shareholders

Particulars Retained Earnings Other Comprehensive Income

Total

As at 31st March 2020 656.87 (1.49) 655.38

Opening Retained Earning 655.38

ProfitForThePeriod 739.90 (1.69) 738.21

As at 31st March 2021 1,395.28 (1.69) 1,393.59

Number (in lakh)

Particulars As at 31-Mar-21 As at 31-Mar-20

Shares Held by Holding/ Parent Company

GAIL( India) Limited 9,923.69 9,923.69

Oil India Limited 1,417.67 1,417.67

NumaligarhRefineryLimited 1,417.67 1,417.67

Government of Assam 1,417.67 1,417.67

Total No. Of Equity Shares of `10 Each 14,176.70 14,176.70

Particulars As at 31-Mar-21 As at 31-Mar-20

Shareholders holding more than 5% of Equity Shares

GAIL( India) Limited 70.00% 70.00%

Oil India Limited 10.00% 10.00%

NumaligarhRefineryLimited 10.00% 10.00%

Government of Assam 10.00% 10.00%

Total 100.00% 100.00%

| 78 |

Corporate information Brahmaputra Cracker and Polymer Limited (“BCPL”) was incorporated on 8th January 2007 under the CompaniesAct,1956withauthorizedcapitalof₹2,000crore.ThiscompanywassetuptoimplementtheAssam Gas Cracker Project (AGCP) and formed through an agreement between GAIL, NRL, OIL and Govt. ofAssamwithequityparticipationof70%,10%,10%and10%respectively.Theprojectisconfiguredtouse both Natural gas and Naphtha as the feed stock. Natural gas is supplied by OIL & ONGC and Naphtha is sourced from NRL. The site for main plant is located at Lepetkata; district Dibrugarh, Assam. Further, other Project facilities viz. C2+ recovery plant and Gas Dehydration Plant are located at Lakwa & Duliajan in Assam. The total Production Capacity is 220,000 TPA of Ethylene and 60,000 TPA Propylene with the main end products being High Density Polyethylene (HDPE) / Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP).

Thefinancialstatementsofthecompanyfortheyearended31stMarch2021wereauthorizedforissueinaccordance with a resolution of the directors on 25th May, 2021.

Basis of preparation The financial statements of the Company have been prepared in accordance with Indian AccountingStandards (Ind-AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 andCompanies (Indian Accounting Standards) Amendment Rules, 2016.

Forallperiodsuptoandincludingtheyearended31March2016, theCompanyprepared its financialstatementsinaccordancewithIndianGAAP,includingaccountingstandardsnotifiedundersection133ofthe Companies Act 2013, read together with Companies (Accounts) Rules 2014 (Indian GAAP). With effect from year ending 31stMarch2017,theCompanyispreparingitsfinancialstatementsinaccordancewithInd-AS.

Thefinancialstatementshavebeenpreparedonahistoricalcostbasis.Wherethereareassetsandliabilitiescalculated on a different basis, this fact is disclosed in the relevant accounting policy.

TheCompanydoesnothaveanysubsidiary,associatesandjointventures,hencethesefinancialstatementsarestandalonefinancialstatementsanddoesnotrequireanyconsolidatedfinancialstatements.

The financialstatementsarepresented in IndianRupees(‘INR’)andthevaluesarepresented inCrore,exceptotherwiseindicated.

1. Significant accounting policies

1.1 Property, Plant and Equipment (PPE)

A. Tangible Assets

i. Property, plant and equipment are stated at original cost net of tax / duty credit availed, less accumulated depreciation and accumulated impairment losses. All costs relating to acquisition of fixed assets till commissioning of such assets are capitalized. In the case of commissioned assets where final payment to the Contractors is pending, capitalization is made on provisional basis, including provisional liability pending approval of competent authority, subject to necessary adjustment in cost and depreciation in the year of settlement.

Notes to the Financial Statements for the year ended 31st March 2021

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ii. Stores & Spares which meets the definition of PPE (whether as components or otherwise) and satisfied recognition criteria, are capitalized. Major inspection/overhaul/repair is recognized in the carrying amount of respective assets as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in the statement of profit and loss as incurred. Similarly, when significant parts of property, plant and equipment (identified individually as component) are required to be replaced at intervals, the Company derecognizes the replaced part, and recognizes the new part with its own associated useful life and it is depreciated accordingly. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

iii. Technical knowhow /license fee incurred at the time of procurement of PPE are capitalized as part of the underlying assets.

iv. Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses/gains arising in case retirement/disposals of property, plant and equipment are recognized in the statement of profit and loss in the year of occurrence.

v. Depreciation is provided in accordance with the useful life as specified in Schedule II of the Companies Act, 2013, on straight line method (SLM) on prorata basis (monthly pro-rata for bought out assets).

vi. Leasehold lands are amortized over the lease period. Leasehold improvements are amortized over the remaining period of the primary lease or expected useful economic lives, whichever is shorter.

vii. The asset’s residual values, useful lives and methods of depreciation/ amortization are reviewed at each reporting period and adjusted prospectively, if appropriate.

B. Intangible Assets

i. Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

ii. Intangible assetswith finite lives (i.e. software and licenses) are amortized over the usefuleconomic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

iii. Intangibleassetswithindefiniteusefullives(principallycomprisethose‘rightofuse’forwhichthereisnoforeseeablelimittotheperiodoverwhichtheyareexpectedtogeneratenetcashflowsgiven the fact that these rights canbeusedevenafter the lifeof respectivepipelines)arenotamortized,butaretestedforimpairmentannually.Theassessmentofindefinitelifeisreviewedannuallytodeterminewhethertheindefinitelifecontinuestobesupportable.Ifnot,thechangeinusefullifefromindefinitetofiniteismadeonaprospectivebasis.

1.2 Capital Work in Progress i. Capital work in progress includes construction stores including material in transit/ equipment

/ services, etc. received at site for use in the projects.

ii. Allrevenueexpensesincurredduringconstructionperiod,whichareexclusivelyattributabletoacquisition/constructionoffixedassets,arecapitalizedatthetimeofcommissioningofsuchassets.

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1.3 Research and development costs

RevenueexpenditureonResearchandDevelopmentischargedtoStatementofProfitandLossintheyearinwhichitisincurred.CapitalexpenditureonResearchandDevelopmentiscapitalizedincasethesamequalifiesasanasset.

1.4 Depreciation /Amortisation

A. Tangible Assets

Depreciation on Tangible PPE (including enabling assets) is provided in accordance with the manner andusefullifeasspecifiedinScheduleIIoftheCompaniesAct,2013,onstraightlinemethod(SLM)onpro-ratabasis(monthlypro-rataforboughtoutassets),exceptfortheassetsasmentionedbelowwheredifferentusefullifehasbeentakenonthebasisofexternal/internaltechnicalevaluation:

i.

Particulars Useful life

Mobile Phones provided for the use of employees 2 YearsCapital Stores/Spares recognized as PPE 3/5/10 Years

ii. Costoftheleaseholdlandisamortisedovertheleaseperiodexceptperpetualleases.

iii. Depreciationduetopriceadjustmentintheoriginalcostoffixedassetsischargedprospectively.

B. Intangible Assets

(i) Intangible assets comprising software and licenses are amortised on Straight Line Method (SLM)overtheusefullifefromthedateofcapitalizationwhichisconsiderednotexceedingfiveyears.Rightofuse(ROU)havingindefinitelife(forwhichthereisnoforeseeablelimittotheperiodoverwhichtheyareexpectedtogeneratenetcashflowsgiventhefactthattheserightscan be used even after the life of respective pipelines) are not amortized, but are tested for impairment annually.

(ii) After impairment of assets, if any, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

C. Capital assets facilities installed at other premises / land

Capital assets facilities installed at the other’s premises on the land whose ownership is not with thecompany,hasbeendepreciatedonSLMbasisinaccordancewiththeusefullifeasspecifiedinSchedule II of the Companies Act, 2013.

1.5 Impairment of non-financial assets

The Carrying amount of cash generating unit are reviewed at each reporting date. In case there isanyindicationofimpairmentbasedonInternal/Externalfactors,impairmentlossisrecognizedwhereverthecarryingamountofassetexceedsitsrecoverableamount.

1.6 Inventories

i. Rawmaterialsandfinishedgoodsarevaluedatweightedaveragecostornetrealizablevalue,whichever is lower.

ii. Stock in process is valued at weighted average cost or net realisable value, whichever is lower. It

| 81 |

isvaluedatweightedaveragecostwherethefinishedgoodsinwhichthesearetobeincorporatedareexpectedtobesoldatorabovetheweightedaveragecost.

iii. Stores and spares and other material for use in production of inventories are valued at weighted average cost or net realisable value, whichever is lower. It is valued at weighted average cost wherethefinishedgoodsinwhichtheywillbeincorporatedareexpectedtobesoldat/orabovecost.

iv. Surplus / Obsolete Stores and Spares are valued at cost or net realisable value, whichever is lower. Surplus/Obsolete Capital Stores, other than held for use in construction of a capital asset, are valued at lower of cost or net realisable value.

v. RenewableEnergyCertificates(RECs)arevaluedatcostonFirstinFirstout(FIFO)basisornetrealizable value, whichever is lower.

1.7 Cash and cash equivalents

Cash and cash equivalents consist of cash at bank and in hand and short-term deposits with an originalmaturityofthreemonthsor less,whicharesubjecttoaninsignificantriskofchangesinvalue.

For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cashequivalentsasdefinedabove,netofoutstandingbankoverdraftsastheyareconsideredanintegralpart of the Company’s cash management.

1.8 Foreign currency transactions i. TheCompany’sfinancialstatementsarepresentedinINR,whichisalsotheCompany’sfunctional

currency.

ii. Foreign currency transactions are recorded on initial recognition in the functional currency, usingtheexchangerateatthedateofthetransaction.

iii. At each balance sheet date, foreign currency monetary items (such as receivables, payables, etc.)arereportedusingtheclosingexchangerate(BCSellingRateforPayablesandTTBuyingRateforReceivables).Exchangedifferencesthatariseonsettlementofmonetaryitemsoronreporting at each balance sheet date of the Company’s monetary items at the closing rate are recognizedasincomeorexpensesintheperiodinwhichtheyarise.

iv. Non-monetary items which are carried at historical cost denominated in a foreign currency are reportedusingtheexchangerateatthedateofthetransaction.

v. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising ontranslation of nonmonetary items is recognized in line with the gain or loss of the item that gave rise to the translation difference (translation differences on items whose gain or loss is recognizedinothercomprehensiveincomeorthestatementofprofitandlossisalsorecognizedinothercomprehensiveincomeorthestatementofprofitandlossrespectively).

1.9 Revenue and other income

(a) Salesarerecognizedontransferofsignificantrisksandrewardsofownershiptothebuyerasper the termsof thecontractsandnosignificantuncertaintyexistsregarding theamountofconsideration that will be derived from sale of goods. Generally this coincides with the delivery ofgoodstocustomers.SalesexcludeGoodsandServiceTaxes.It ismeasuredatfairvalueof

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consideration received or receivable, net of returns, allowances, trade discounts and volume rebates. Any retrospective revision in prices is accounted for in the year of such revision.

(b) Ind AS 115 supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue arising from contracts with customers. Ind AS 115establishesafive-stepmodeltoaccountforrevenuearisingfromcontractswithcustomersandrequiresthatrevenueberecognisedatanamountthatreflectstheconsiderationtowhichanentityexpectstobeentitledinexchangefortransferringgoodsorservicestoacustomer.

IndAS115requiresentitiestoexercisejudgement,takingintoconsiderationalloftherelevantfactsand circumstances when applying each step of the model to contracts with their customers. The standardalsospecifiestheaccountingfortheincrementalcostsofobtainingacontractandthecostsdirectlyrelatedtofulfillingacontract.Inaddition,thestandardrequiresextensivedisclosures.

TheCompanyadoptedIndAS115usingthemodifiedretrospectivemethodofadoptionwiththedate of initial application of 1 April 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Company elected to apply the standard to all contracts as at 1 April 2018.

The Company recognises revenue at different points upon satisfaction of performance obligation as described below:

i. Petrochemicals:

The Company after dispatching goods from warehouse, does not have the ability to redirect the goods to any other customer and control of the goods transfers at the time of dispatch from warehouse. As such the revenue in this segment considered as at the point.

ii. Other Liquid Hydro Carbon:

In this segment the control of goods is transferred on dispatch of goods from factory, and hence, revenue from the sales of Liquid hydrocarbons is recognized at the time of dispatch from the factory.

(c) Claims on Customers (including interest on delayed realization from customers) are accounted forwhenthereissignificantcertaintythattheclaimsarerealizable.

(d) Other Interest income (e.g. on deposits with bank etc.) is recognized on a time proportion basis.

(e) The company is eligible to receive various subsidies under North-East Industrial Policy of the Central Government schemes announced from time to time. Accordingly, the Company has preferred certain claims through Government of Assam, Department of Industries and Commerce.Thesubsidiesarerecognizedonaccrualbasiswhenthereexistssignificantcertaintyofitsrealizationandconditionsbeingfulfilled.Thesameisaccountedforasincome/reductionofcorrespondingexpensesoftheCompanyasappropriate.

(f) The company is eligible to receive Feed Stock Subsidy from the Central Government based on an approvedmethodology. The subsidies are recognized on accrual basiswhen there existssignificantcertaintyofitsrealizationandtheconditionsbeingmet.Thesameisaccountedforas operating income during the year.

(g) The company is eligible to receive refund of 29 % of IGST, 58% of CGST paid through debit in thecashledgeronitsprimaryfinishedgoodsunderBudgetarySupportschemeofGoodsandServicesTax(GST).Thesubsidiesarerecognizedonaccrualbasiswhenthereexistssignificant

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certainty of its realization and the conditions being met. The same is accounted for as operating income during the year

(h) Insurance claims are accounted for on the basis of claims admitted by the insurers.

1.10 Employee benefits

i Short term benefits:

Allemployeebenefits thatareexpected tobesettledwhollywithin twelvemonthsafter theendofperiodinwhichtheemployeerendertherelatedservicesareclassifiedasshorttermemployeebenefits.Benefitssuchassalaries,wages,short-termcompensatedabsences,performanceincentivesetc. are recognized during the period in which the employee renders related service.

ii. (a) Post-employment benefits:

Thecostofprovidingbenefitsunderthedefinedbenefitplan(i.e.gratuity)isdeterminedusingtheprojected unit credit method with actuarial valuations being carried out annually, which recognizes eachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureeachunitseparatelytobuildupthefinalobligation.

ii. (b) Re-measurements comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and thereturnonplanassets(excludingamounts includedinnet interestonthenetdefinedbenefitliability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur.Remeasurementsarenotreclassifiedtothestatementofprofitandlossinsubsequentperiods.Pastservicecostisrecognizedinthestatementofprofitandlossintheperiodofplanamendment.Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliability or asset.

iii Other long-term employee benefit obligations:

Compensatedabsencesandotherbenefitswhicharenotexpectedtooccurwithintwelvemonthsafter the end of the period in which the employee renders the related services are recognized as a liability at the present value of the obligation at the balance sheet date using the projected unit creditmethod. Remeasurements as a result of experience adjustments and changes in actuarialassumptionsarerecognisedinprofitorloss.

1.11 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction, or production of a qualifying asset are capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale, after netting off any income earned on temporary investment of such funds. A qualifying asset is an asset that necessarily requires a substantial period of time (generally over twelve months) to get ready for its intended use or sale.

Allotherborrowingcostsarerecognizedasexpenseintheperiodinwhichtheyareincurred.

1.12 Leases

OnMarch30,2019,theMinistryofCorporateAffairshasnotifiedIndAS116,“Leases”.IndAS116replacestheexistingleasesstandard,IndAS17,“Leases,andrelatedinterpretations”.Thestandard

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sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor.

Ind AS 116 introduces a single lease accounting model and requires the lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. The standard also contains enhanced disclosure requirements for lessees.

The effective date for the adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits two possible methods of transition:

Full retrospective Approach

Under this option, the entity is required to determine the carrying amount of ROU assets and lease liabilities at the opening of the comparative period (1st April, 2018) as if those leases had been accounted for under Ind AS 116 since inception of the contract. Difference between the ROU assets and liabilities are adjusted to retained earnings as on 1st April, 2018. Previous year (i.e. FY 2018-19) ProfitorLossfiguresarerequiredtoberestatedandtheimpactforchangesofdepreciation,interestcost and lease liabilities to be given in FY 2018-19. Third Balance Sheet as on 1st April, 2018 is also required.

Modified Retrospective Approach

Option A: Retrospective Calculation of ROU asset and Prospective calculation of leasehold Obligation. Under this option the ROU asset is calculated on the commencement of the lease and carrying value is calculated on the transition date (1st April, 2019). The lease liabilities are recognized based on incremental borrowing rate on the initial application date (1st April, 2019). The difference between lease liabilities and ROU assets is adjusted to retained earnings as on 1st April, 2019.

Option B: Prospective calculation of leasehold obligation and ROU asset:

Under this option, the lease liabilities are recognized based on incremental borrowing rate on the initial application date (1st April, 2019) and the same amount is recognized for ROU assets. In this case leasehold obligation and ROU asset will be equal and there will be no impact to retained earnings on the date of transition.

On completion of evaluation of the effect of adoption of Ind AS 116, the Company has decided to usetheModifiedRetrospectiveApproach(OptionB)bycapitalizationoffutureleaserentalsonthetransition date i.e., 01.04.2019.

TheCompany’sleaseassetclassesprimarilyconsistofleasesforland,vehiclehireandrentalofficepremises. The Company assesses whether a contract contains a lease, at inception of a contract. To assesswhetheracontractconveystherighttocontroltheuseofanidentifiedasset,theCompanyassesses whether:

(i) thecontractinvolvestheuseofanidentifiedasset

(ii) theCompanyhassubstantiallyalloftheeconomicbenefitsfromuseoftheassetthroughtheperiod of the lease and

(iii) the Company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and acorrespondingleaseliabilityforallleasearrangementsinwhichitisalessee,exceptforleaseswitha term of twelve months or less (short-term leases) and low value leases. For these short-term and

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lowvalueleases,theCompanyrecognizestheleasepaymentsasanoperatingexpenseonastraight-line basis over the term of the lease.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.

The Company as a lessorAleaseforwhichtheCompanyisalessorisclassifiedasafinanceoroperatinglease.Whenevertheterms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contractisclassifiedasafinancelease.Allotherleasesareclassifiedasoperating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the subleaseseparately.Thesublease isclassifiedasa financeoroperating leasebyreferenceto theright-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

1.13 Liquidated damages/ Price Reduction Schedule

Amount recovered towards Liquidated Damages/Price Reduction Schedule are accounted for as and when the matter is settled. Liquidation damage if settled after capitalization of the PPE are charged torevenue,ifbelow₹50.00lakhineachcaseotherwiseadjustedinthecostoftherelevantPPE.

1.14 Taxation

Taxexpenserepresentsthesumoftaxcurrentlypayableanddeferredtax.

(a) Current Tax Currenttaxisprovidedatamountsexpectedtobepaid(orrecovered)usingthetaxratesandlawsthat have been enacted or substantively enacted by the balance sheet date in the countries where the Companyoperatesandgeneratestaxableincome.Currentincometaxrelatingtoitemsrecognizeddirectlyinequityisrecognizedinequityandnotinthestatementofprofitand loss.Managementperiodicallyevaluatespositionstaken inthetaxreturnswithrespecttosituationsinwhichapplicabletaxregulationsaresubjecttointerpretationand establishes provisions where appropriate.

(b) Deferred Tax

Deferredtaxisprovidedusingthebalancesheetmethodonalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreporting purposes.

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Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettledbasedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Taxrelatingtoitemsrecognizeddirectly in equity is recognized in equity and not in the income statement.

Deferredtaxrelatingtoitemsrecognizedoutsideprofitorlossisrecognizedoutsideprofitorloss(eitherinothercomprehensiveincomeorinequity).Deferredtaxitemsarerecognizedincorrelationto the underlying transaction either in OCI or directly in equity.

Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandisadjustedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpart of the asset to be recovered.

Deferredtaxassetsanddeferredtaxliabilitiesareoffsetifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesametaxableentityandthesametaxationauthority.

1.15 Earnings per share

Basicearningspershareiscalculatedbydividingtheprofitfromcontinuingoperationsandtotalprofit,bothattributabletoequityshareholdersoftheCompanybytheweightedaveragenumberofequity shares outstanding during the period.

1.16 Provisions, Contingent liabilities, Contingent assets and Commitments

Provisions are recognized when the Company has a present obligation (legal or constructive) as aresultofapastevent, it isprobablethatanoutflowofresourcesembodyingeconomicbenefitswill be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whenappropriate,therisksspecifictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognizedasafinancecost.

Contingent liability is disclosed in the case of:

• apresentobligationarisingfrompastevents,whenitisnotprobablethatanoutflowofresourceswill be required to settle the obligation;

• a present obligation arising from past events, when no reliable estimate is possible;

• apossibleobligationarisingfrompastevents,unlesstheprobabilityofoutflowofresourcesisremote.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

1.17 Government grants

• In case of depreciable assets, the cost of the assets is shown at gross value and grant thereon is takentodeferredincomewhichisrecognizedasincomeintheStatementofProfitandLossover

| 87 |

the useful life of the asset.

• IncaseofGovernmentgrantreceivedagainstexpensesincurredareconsideredasincomeintheyear inwhich itbecomesreceivable.ThesearereducedfromtherespectiveexpensesandthebalanceisrecognizedinthestatementofProfit&Lossasincomeofthatyear.

1.18 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ noncurrent classification.

An asset as current when it is:

• Expectedtoberealisedorintendedtosoldorconsumedinnormaloperatingcycle

• Held primarily for the purpose of trading

• Expectedtoberealisedwithintwelvemonthsafterthereportingperiod,or

• Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlealiabilityforatleast twelve months after the reporting period

Allotherassetsareclassifiedasnon-current.

A liability is current when:

• Itisexpectedtobesettledinnormaloperatingcycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

TheCompanyclassifiesallotherliabilitiesasnon-current.

Deferredtaxassetsandliabilitiesareclassifiedasnon-currentassetsandliabilities.

1.19 Financial instruments

Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliability or equity instrument of another entity and can be held within business model.

(a) Financial assets

Classification

The Company classifies financial assets as subsequentlymeasured at amortized cost, fair valuethroughothercomprehensiveincomeorfairvaluethroughprofitorlossonthebasisofitsbusinessmodelformanagingthefinancialassetsandthecontractualcashflowscharacteristicsofthefinancialasset.

Initial recognition and measurementAll financial assets are recognized initially at fair value plus, in the case of financial assets notrecordedatfairvaluethroughprofitorloss,transactioncoststhatareattributabletotheacquisitionofthefinancialasset.

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Subsequent measurement

Forpurposesofsubsequentmeasurementfinancialassetsareclassifiedinbelowcategories:

• Financial assets carried at amortised cost

Afinancialassetissubsequentlymeasuredatamortisedcostifitisheldwithinabusinessmodelwhoseobjectiveistoholdtheassetinordertocollectcontractualcashflowsandthecontractualtermsof the financialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipal and interest on the principal amount outstanding.

• Financial assets at fair value through other comprehensive income

Afinancialassetissubsequentlymeasuredatfairvaluethroughothercomprehensiveincomeifitisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingfinancialassetsandthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding

• Financial assets at fair value through profit or loss

Afinancialassetwhichisnotclassifiedinanyoftheabovecategoriesaresubsequentlyfairvaluedthroughprofitorloss.

Derecognition

AfinancialassetisprimarilyderecognizedwhentherightstoreceivecashflowsfromtheassethaveexpiredortheCompanyhastransferreditsrightstoreceivecashflowsfromtheasset.

Impairment of financial assets

TheCompanyassessesimpairmentbasedonexpectedcreditlosses(ECL)modelformeasurementandrecognitionof impairment losson the financial assets thatare trade receivablesor contractrevenue receivables and lease receivables.

(b) Financial liabilities

Classification

TheCompanyclassifiesallfinancialliabilitiesassubsequentlymeasuredatamortizedcost,exceptforfinancialliabilitiesatfairvaluethroughprofitorloss.Suchliabilities,includingderivativesthatare liabilities, shall be subsequently measured at fair value.

Initial recognition and measurement

Allfinancialliabilitiesarerecognizedinitiallyatfairvalueand,inthecaseofloansandborrowingsand payables, net of directly attributable transaction costs. The Company’s financial liabilitiesinclude trade and other payables, loans and borrowings etc.

Subsequent measurement

Themeasurementoffinancialliabilitiesdependsontheirclassification,asdescribedbelow:

• Fnancial liabilities at amortised cost

After initial recognition, interest-bearing loans and borrowings are subsequently measured at

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amortizedcostusingtheEIRmethod.Gainsand lossesarerecognized inprofitor losswhentheliabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that areanintegralpartoftheEIR.TheEIRamortizationisincludedasfinancecostsinthestatementofprofitandloss.

• Financial liabilities at fair value through profit or loss

Financialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortradingandfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.Financialliabilitiesareclassifiedasheldfortradingiftheyareincurredforthepurposeofrepurchasinginthenearterm.Gainsorlossesonliabilitiesheldfortradingarerecognizedinthestatementofprofitandloss.

Derecognition

Afinancialliabilityisderecognizedwhentheobligationundertheliabilityisdischargedorcancelledor expires.When an existing financial liability is replaced by another from the same lender onsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasthederecognitionoftheoriginalliabilityandtherecognitionof a new liability. The difference in the respective carrying amounts is recognized in the statement ofprofitandloss.

(c) Offsetting of financial instruments

Financialassetsand financial liabilitiesareoffsetand thenetamount is reported in thebalancesheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

1.20 Significant accounting judgments, estimates and assumptions

ThepreparationoftheCompany’sfinancialstatementsrequiresmanagementtomakejudgments,estimates and assumptions that affect the reported amounts of revenues, expenses, assets andliabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated and arebasedonmanagement’sexperienceandotherfactors,includingexpectationsoffutureeventsthatare believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assetsorliabilitiesaffectedinfutureperiods.Inparticular,theCompanyhasidentifiedthefollowingareaswheresignificant judgments,estimatesandassumptionsarerequired.Further informationon each of these areas and how they impact the various accounting policies are described below andalsointherelevantnotestothefinancialstatements.Changesinestimatesareaccountedforprospectively.

1.20.1 Judgments

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financialstatements:

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1.20.2 Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractor, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of theexistence,andpotentialquantum,ofcontingenciesinherentlyinvolvestheexerciseofsignificantjudgment and the use of estimates regarding the outcome of future events.

1.20.3 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reportingdatethathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsof assets and liabilitieswithin the next financial year, are describedbelow. TheCompanybaseditsassumptionsandestimatesonparametersavailablewhenthestandalonefinancialstatementswereprepared.Existingcircumstancesandassumptionsaboutfuturedevelopments,however,maychange due to market change or circumstances arising beyond the control of the Company. Such changesarereflectedintheassumptionswhentheyoccur.

1.20.4 Prior Period adjustments

As per Ind AS 8, material errors refer to those errors that relate to one or more prior periods for which financial statements have already been issued. If this happens, such material errors arecorrected by adjusting the comparative information for the periods affected that are included in the current period's financial statements. If the error occurred before the earliest prior periodpresented, it will restate the opening balances of assets, liabilities and equity for the earliest prior period presented. However, where an error arising in a prior period is not material to prior period financialstatements,itmightbeacceptabletocorrecttheerrorinthecurrentperiodratherthanretrospectivelyconsideringthematerialitythresholdlimitof1%ofturnoveror5%ofprofitbeforetaxeswhicheverishigher.

1.20.5 Impairment of assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired.Ifanyindicationexists,orwhenannualimpairmenttestingforanassetisrequired,theCompany estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. It is determined for an individualasset,unless theassetdoesnotgeneratecash inflows thatare largely independentofthosefromotherassetsorgroupsofassets.WherethecarryingamountofanassetorCGUexceedsits recoverable amount, the asset is considered impaired and is written down to its recoverable amount.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountrate thatreflectscurrentmarketassessmentsof the timevalueofmoneyand therisksspecific to theasset. Indetermining fairvalue lesscostsofdisposal, recentmarkettransactionsaretakenintoaccount.Ifnosuchtransactionscanbeidentified,anappropriatevaluation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

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Sd/- Sd/- Sd/- (Reep Hazarika) (Pruthiviraj Dash) (Ruli Das Sen) Managing Director Director (Finance) & CFO Company Secretary DIN: 08667195 DIN: 08253888 M. No. F4012

As per our separate report on Even Date For RKP Associates Chartered Accountants, FRN No. 322473E

Sd/- (Ravi Kumar Patwa)Place : Dibrugarh / Guwahati / Silchar PartnerDate : 25th May, 2021 Membership No. 056409

1.20.6 Defined benefit plans

Thecostofthedefinedbenefitplanandotherpost-employmentbenefitsandthepresentvalueofsuch obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long termnature, a definedbenefitobligationishighlysensitivetochangesintheseassumptions.Allassumptionsarereviewedat each reporting date.

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| 93 |

Note 3(a): Intangible Assets(` in crore)

CostSoftware /

LicensesRight of Use (Perpetual)

Right of Use (Limited

useful life)

Total

At 1st April 2020 9.60 8.77 0.04 18.41 Additions 0.44 - - 0.44 Capitalised internal development costs - - - - Acquisitions through business combinations - - - - Transfer to held for sale - - - - Disposals - - - - Exchangeadjustments - - - - Others - - - -

At 31st March 2021 10.04 8.77 0.04 18.85

(` in crore)

Accumulated amortisation and impairment Software / Licenses

Right of Use (Perpetual)

Right of Use (Limited

useful life)

Total

At 1st April 2020 7.74 0.09 0.04 7.88 Additions 1.88 - - 1.88 Capitalised internal development costsAcquisitions through business combinationsTransfer to held for saleDisposalsExchangeadjustmentsOthers

At 31st March 2021 9.62 0.09 0.04 9.75

Net book value Software / Licenses

Right of Use (Perpetual)

Right of Use (Limited

useful life)

Total

At 31 March 2020 1.86 8.68 0.00 10.54 At 31 March 2021 0.42 8.68 0.00 9.10

Note 3(b): ROU Lease Asset(` in crore)

Cost Leased land

Leased Offices

Leased Vehicles

Total

At 1st April 2020 240.17 0.37 4.50 245.04 Additions - Capitalised internal development costs - - - - Acquisitions through business combinations - - - - Transfer to held for sale - - - - Disposals - - - - Exchangeadjustments - - - - Others - - - -

At 31st March 2021 240.17 0.37 4.50 245.04

| 94 |

(` in crore)

Accumulated amortization and impairment Leased land

Leased Offices

Leased Vehicles

Total

At 1st April 2020 8.98 0.12 1.50 10.61 Additions 8.98 0.16 1.62 10.75 Capitalised internal development costsAcquisitions through business combinationsTransfer to held for saleDisposalsExchangeadjustmentsOthers

At 31st March 2021 17.96 0.28 3.12 21.36

Net book value Leased land

Leased Offices

Leased Vehicles

Total

At 31 March 2020 231.19 0.24 3.00 234.44 At 31 March 2021 222.21 0.09 1.38 223.68

Note 4: Financial assets(` in crore)

Particulars As at31-03-2021

As at31-03-2020

(a) Investments - - (b) Trade receivables 67.72 2.87

Considered good - Secured 48.86 - Considered good - Unsecured 18.86 2.87 WhichhavesignificantincreaseinCreditRisk 17.17 17.17 Credit impaired - - Less: Provision for Doubtful Debts (17.17) (17.17)

(c) Loan - -(d) Cash and Cash Equivalents 1,340.57 42.92 Balances with banks:

— On current accounts 34.88 0.41 — Deposits with original maturity of less than three months 1,305.69 42.51

(e) Others 1,523.09 2,523.28 Interest accrued but not due - 0.99 Recievable Against Subsidy/ Other Claims 1,523.07 2,497.42

- Current 1,131.29 1,851.63 - Non Current 391.78 645.79

Security Deposit Paid 0.02 24.87 - Current - - - Non Current 0.02 24.87

Total 2,931.38 2,569.07 Current 2,539.58 1,898.41 Non current 391.80 670.66 Total 2,931.38 2,569.07

*All figures assigned are considered as 'Current' unless classified as 'Non-Current'

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Note 5: Other non financial assets(` in crore)

Particulars As at As at31-03-2021 31-03-2020

Unsecured (Considered good): Advanceincometax 179.78 0.03 IncomeTaxPaidonDemand - 1.38 Balance with Government Authorities

GST Credit Receivable 36.95 9.58 - Current 36.95 9.58 - Non Current - -

TDS 1.98 2.20 LoansLoans and advances to employees 0.27 0.41 Other advances 0.08 0.08 Capital Advances to suppliers/contractors: 6.43 6.92 Advances to suppliers/contractors: 18.14 20.38 Statutory Claims under Dispute 38.00 38.00 PrepaymentsPre-paidexpenses 10.50 6.05 - Current 10.05 6.02 - Non Current 0.45 0.03 Total 292.13 85.03 Current 291.68 85.00 Non Current 0.45 0.03 Total 292.13 85.03

*All figures assigned are considered as 'Current' unless classified as 'Non-Current'

Note 6: Inventories(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020(a) Raw materials , Stores , Spares and others Raw Materials & other Consumables 50.62 32.46 Consumable Chemicals 65.64 73.58 Stores & Spares 207.31 223.27 Less: Provision for Obsolesence (21.66 ) (21.66) (b) Semi Finished Goods/By products Semi Process Stock 13.58 15.73 By Products 3.32 4.41 (c) Finished Goods LLDPE 33.71 119.23 HDPE 0.06 3.48 PP 4.81 38.73 Total 357.39 489.24

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Note 7: Equity share capital(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020Share capitalAuthorised2,00,00,00,000EquitySharesof₹10each 2,000.00 2,000.00 (Previousyear2,00,00,00,000Equitysharesof₹10each)

2,000.00 2,000.00

Issued, subscribed and fully paid up 1,417.67 1,417.67

Note 8: Other equity(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020Other equity:Retained earnings 655.38 (850.73) Add: Total comprehensive Income 738.21 1,506.11 Transferred to Share Capital - - Total 1,393.59 655.38

Note 9: Borrowings(` in crore)

Particulars Effective Interest Rate Maturity As at As at 31-03-2021 31-03-2020

Secured Term loans: - Loan from State Bank of India SBI 6M MCLR plus 0.20% 30-08-2025 1,226.86 1,404.60

Short Term loans: - Cash Credit from State Bank of India SBI 6M MCLR plus 0.15% Revolving - 18.12 - ICICI WCL - 105.00 - AXIS WCL 6.50% 02-04-2021 10.00 100.00 - SBI CAG Branch WCL-1 5.95% 06-04-2021 137.04

200.00 - SBI CAG Branch WCL-2 6.25% 13-06-2021 63.18 Inter Corporate Loan - GAIL (I) Ltd SBI 1yr MCLR plus 0.20% - 150.00

From Other Parties : - Oil Industry Development Board 6.97% 31-03-2031 708.95 796.52 Total 2,146.04 2,774.24 Less Current Borrowings 210.23 423.12 Total Non Current Borrowings 1,935.81 2,351.12

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Schedule of Current Borrowings

Particulars Effective Interest Rate Maturity As at As at 31-03-2021 31-03-2020

From Other Party - -

Loan From Related Party Gail India Ltd - -

Deposits - -

Other Loans 210.23 423.12 210.23 423.12

- Loan from State Bank of India(The long term loansaresecuredby firstrankingchargebywayofhypothecationand/ormortgageon the fixedassets,movable and immoveable, present and future including tangible and intangible assets, including but not limited to the ‘BCPLPetrochemicalComplexatLepetkata,Dibrugarh,Assam’(onwhichworkingcapital lendershaveasecondcharge)andexcludingtheassetsspecificallychargedtoOilIndustryDevelopmentBoard.Providedthatthemortgageofthelandincidentaltothe‘BCPLPetrochemicalComplexatLepetkata,Dibrugarh,Assam’hasbeendoneonlytotheextentofthetitledeedsavailableinrespectoftheprivatelandof2870(twothousandeighthundredseventy)bighas(approx.)outofthetotallandof2991(twothousandninehundredninetyone)bighas,takeninpossessionfortheplantexemptinggovernmentlandof121(onehundredandtwentyone)bighas,inviewofthedifficultiesinobtainingtitledeedsforthesame,however,thesame shall be mortgaged upon obtaining the title deeds.)

Terms of Repayment: Repayment of loan is in 96 monthly structured installments commencing from June 2017. *Rate of interest : SBI 6M MCLR rate plus a spread of 0.20 % i.e 7.15 % as on 31st March'21.Note: An amount of ₹186.88 Crore payable within next 12 months, has been transferred to "Other Financial liabilities" at Note no.11(The working capital loan is secured by 1st charge on current assets and 2nd Charge on the fixed assets, movable and immoveable, present and future including tangible and intangible assets, including but not limited to the ‘BCPL Petrochemical Complex at Lepetkata, Dibrugarh, Assam’ and excluding the assets specifically charged to Oil Industry Development Board.)

- Oil Industry Development BoardThelongtermloanstotheextentfundedbyOilIndustryDevelopmentBoard(OIDB)aresecuredbywayoffirstmortgageandchargeonallmovable(saveandexceptbookdebt)andimmovablepropertiesspecificallychargedtoOIDB,presentandfuture.

*Terms of Repayment: Total period of loan is 10 years from the date of drawal which includes 2 years moratarium. The repaymentshallbein8yearlyequalinstallments.Thefirstinstallmentshallbecomedueattheendof3rd year from the date of drawal. Rate of interest on loan will depend on the month in which loan installment is drawn by BCPL.

*Rate of interest: the weighted average rate of interest is around 6.97 % p.a. payable quarterly.

Note:Anamountof₹184.26Crorepayablewithinnext12months,hasbeentransferredto"OtherFinancialliabilities"atNote no.11.

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Note 10 - Trade Payables(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020

Trade payables

Due to MSME Vendors 10.48 2.13

Due to others 36.90 38.59

Due to Related Party 74.18 109.38

Total 121.56 150.10

Current 121.56 150.10

Non current - -

Total 121.56 150.10

*Allfiguresassignedareconsideredas'Current'unlessclassifiedas'Non-Current'

Note 11: Other Financial Liabilities(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020Current maturities of long term debt: - Oil Industry Development Board 184.26 213.84 - State Bank of India 186.88 138.17 - GAIL - 50.00 Interest Accrued On Borrowings - 0.68 Others : Deposits/Retention Money from Contractors and others 240.68 264.66 Price reduction schedule 64.31 66.32 Security Deposit 12.66 14.86 Earnest money deposit 0.34 0.38 Payable to Employees 0.15 0.05 Payable for Capital Expenditure 1.88 25.78 Statutory Liability Payables 56.52 6.70 Lease Hold Obligations (ROU) 1.60 3.39 - Current 1.32 1.79 - Non Current 0.28 1.60 Total 749.28 784.83 Current 749.01 783.23 Non current 0.28 1.60 Total 749.28 784.83

*Allfiguresassignedareconsideredas'Current'unlessclassifiedas'Non-Current'

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Note 12: Provisions(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020ProvisionsProvisionforemployeebenefits 132.75 78.14 - Current 122.05 70.43 - Non Current 10.70 7.71 Provision for gratuity 4.36 0.72 - Current 4.36 - - Non Current - 0.72 ProvisionforIncomeTax 190.64 2.72 Pro.forEmployeesBenefits-Superannua 5.25 0.76 Provision for Liability (Contractors) 71.55 117.96 Others 48.74 71.69 Total 453.29 271.99 Current 442.59 263.56 Non current 10.70 8.43 Total 453.29 271.99 *Allfiguresassignedareconsideredas'Current'unlessclassifiedas'Non-Current'

Note 13: Non Financial Liabilities(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020Othernonfinancialliabilities Government Grants 4,179.89 4,391.24 - Current 211.65 211.63 - Non Current 3,968.24 4,179.61 Others 2.77 2.84 Advance from customers 2.06 4.87 Total 4,184.72 4,398.94 Current 216.48 219.34 Non current 3,968.24 4,179.61 Total 4,184.72 4,398.94

*Allfiguresassignedareconsideredas'Current'unlessclassifiedas'Non-Current'

Note 14: Deferred taxation(` in crore)

ParticularsAs at As at

31-03-2021 31-03-2020

Deferredtaxasset/liability (246.98) (167.64)Deferred tax assets/(liabilities)-net (246.98) (167.64)

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Note 15: Revenue from operations(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Sale of products (including GST)(a) Sale of HDPE/LLDPE 2,203.26 1,862.07 (b) Sale of Polypropelene 595.27 527.10 (c) Sale of HPG ,CBFS,Slop Oil,etc. 237.22 246.76 Total sale of products 3,035.75 2,635.93 Sale/ rendering of services - - Less: GST on Sales 470.82 408.53 Less: Discount on Sales 115.27 141.81 Total 2,449.66 2,085.59 Add: Other Operating Income 391.78 645.79 Add: Budgetary Support Under GST 61.18 - Total 2,902.62 2,731.38

Note 16: Other Income(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Other non-operating Income:Interest on FDR's 1.23 1.49 Other Interest 3.69 2.61 Government grants 211.64 205.95 Recoveries from Employees 0.73 0.73 ExcessProvisionWrittenBack 2.36 - Reimbursement of VAT on NG 278.50 - Misc. Receipts 38.74 5.49 Total 536.89 216.27

Note 17: Cost of raw material consumed(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Raw materials consumed 1,146.26 1,672.87 Chemical & Catalyst 71.45 73.36 Total 1,217.71 1,746.22

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Note 18: Employee Benefit Expenses(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Salary, Wages and Allowances 126.52 139.66 Contribution to Provident and other Funds 17.60 11.40 WelfareExpenses 10.07 10.41 Secondment charges 7.70 9.56 Total 161.89 171.03

Note 19: Depreciation and amortization expense(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

DepreciationandAmortizationExpenses 392.68 390.85 Total 392.68 390.85

Note 20: Finance cost(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Interest on Term Loans from Banks 116.90 136.20 Interest on Short Term Loans from Banks 31.87 17.07 Interest on Loans from Other Institutions 70.36 85.78 Interest on Loans from Promoters 14.54 17.37 Interest on other Securities - 0.15 Interest on Lease Obligations (ROU) 0.22 0.31 Other Borrowing Costs(Commitment and other Finance Charges) 1.43 1.64

Less: NEIIP Interest Subsidy - (6.09) Total 235.32 252.43

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Note 21: Other Expenses(` in crore)

ParticularsYear Ended Year Ended31-Mar-21 31-Mar-20

Stores & Spares Consumed 41.32 42.32 Power, Fuel and Water Charges: Power and Water charges 9.68 16.51 Repairs and Maintenance: - Plant and Machinery 23.32 31.37 Building 5.79 4.52 Others 2.42 1.99 Provision for obsolence of Stores & Spares - 21.66 Insurance 4.53 3.32 Communicationexpenses 0.28 0.15 Printing and Stationery 0.13 0.14 TravellingExpenses 0.32 2.13 Books and Periodicals 0.04 0.05 Advertisenement and Publicity 0.27 0.37 Payment to Auditors: Audit Fees 0.07 0.06 Taxauditfees - 0.01 Management services 0.02 0.03 EntertainmentExp 0.12 0.30 RecruitmentandTrainningExpenses 0.12 0.31 VehicleHireandrunningExpenses 2.81 3.17 RentRates&Taxes 1.47 6.24 Consultancy Charges 0.47 0.36 Legal and Professional Charges 1.07 1.14 Directors sitting fees 0.03 0.01 SellingandDistributionExpenses 7.10 45.24 Bad Debts /Claims Written off 19.06 - Provision for Doubtful Debts - 17.17 Commission on Sales 66.82 64.57 SecurityExpenses 35.05 33.62 CSRexpenses 11.50 - Net loss on Foreign currency Transaction and Translation (0.90) 1.61 OtherExpenses 62.45 49.21 Total 295.36 347.58

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22. Contingent Liabilities and Commitments:` in crore

(a) Contingent Liabilities: 31-Mar-21 31-Mar-20

Claims against the Company not as debts:ServiceTaxmatters* 7.90 7.90Court cases:

Land Acquisition cases for Higher Compensation 20.70 33.70Others 7.71 7.71ClaimbycontractorsArbitrationcases/otherextraclaims on capital account

544.85 499.65

* Details at note 30(b).

` in crore

(b) Capital Commitments: 31-Mar-21 31-Mar-20

Estimatedamountofcontractsremainingtobeexecutedon capital account and not provided for

59.74 11.64

` in crore

(c ) Guarantees & other Commitment: 31-Mar-21 31-Mar-20

DSRA Bank Guarantees 30.00 33.50Letter of Credits issued 24.10 30.68Counter Guarantee to GAIL for OIDB Loan 100.00 250.00

(d) RegistrationchargestowardstransferofGAIL’sLakwaunit:₹10.00Cr.(Previousyear₹10.00Cr.).

Note :

a. The Company does not expect any reimbursement in respect of the above contingentliabilities.

b. Itisnotpracticabletoestimatethetimingofcashoutflows,ifany,inrespectofmattersabove,pending resolution of the arbitration/ appellate proceedings.

c. The Company currently does not have any Contingent Assets. The counter claims under arbitrations have, however, been suitably adjusted with the claim against the company.

d. The contingent liability reported under Arbitration includes an amount of `2.34 crore relating to M/s BIL for which provision has not been made although the arbitral award has beenpassedinfavourofthecontractorasBCPLisintheprocessoffillingthematterwithHigh Court based on a legal opinion strongly suggesting the move.

23. Government Grants:

A. Capital Grants

Capital Subsidy: Based on the approval of the Government of India for setting up AGCP, being implementedbyBCPLinstateofAssam,againstCapitalSubsidyof₹5239.45Cr.,theCompanyhasreceivedCapitalSubsidyof₹5221.03Cr.till31.03.2021.Anamountof₹0.30Cr.hasbeenreceived

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as interest during the FY 2020-21(Previous FY ₹1.06 Cr) on such capital subsidy out of funddeposited on short term basis and such interest portion has been adjusted with capital subsidy receivables in line of approved sanctions The total capital subsidy received including interest standsat₹0.30CrforFY2020-21ascomparedto₹211.64CrforFY2019-20.Thebalanceamountofcapitalssubsidyreceivablestandsat₹18.12CrandreleaseofthesameshallberequestedinRE 2021-22 from Govt. of India. Capital Subsidy received from Government of India has been considered as deferred income in terms of Ind-As 20 and is recognized as income in the Statement ofProfitandLossovertheusefullifeofthepetrochemicalcomplex.Accordinglyinthecurrentfinancialyearanamountof₹211.64Cr.hasbeentransferred(Previousyear₹205.95Cr.)totheStatementofProfit&LossasotherincomeandthebalanceinCapitalSubsidyaccounthasbeencarriedforwardas“GovernmentGrants”classifiedunder“Non-FinancialLiability”.

B. Revenue Grants.

i. Feed Stock Subsidy:

As per approved methodology for computation of feed stock subsidy, for 15 Years of plant operation,BCPLhadsubmittedaclaimof₹1705.35CrtoMoPNGfortheperiodFY2015-16toFY2018-19againstwhichanamountof₹1700.00Crwasreleasedon31.03.2021.Theactualclaimof₹645.79croreforFY2019-20hasalsobeensubmittedandisunderconsiderationbytheadministrativeministry.Further,thecompanyhasconsideredanamountof₹391.78Cr(previousyear₹645.79Cr.)asclaimtowardsfeedstocksubsidyforFY2020-21under‘OtherOperating Income’ on accrual basis based on the projection/ estimate as per the methodology.

ii. Exemption from Sales Tax / Vat on Feedstock / Raw Material:

In accordance with JV agreement signed among the promoters of the Company, Government of Assam (GoA) vide Notification No.FT.22/2018/61 Dated 19.6.2020 has extended anexemptiontoBrahmaputraCrackerandPolymerLimited(BCPL)frompaymentoftaxundertheAssamValueAddedTaxAct,2003inrespectofpurchaseofNaturalGasforaperiodoffifteenyearsfromthedateofcommencementofcommercialproduction,i.e.,from02.01.2016to01.01.2031.Asperthesaidnotification,theamountoftaxalreadypaidbyBCPLamountingto ₹278.50 Cr on purchase of Natural Gas from registered dealers for the period from02.01.2016 to 31.03.2020 has been claimed from the authority. Considering the reasonable certaintyofrefundableamountfromtheGovernmentinviewofthespecificnotificationthesame has been accounted as ‘Other Income’.

iii. North East Industrial & Investment Promotion Policy (NEIIPP) Subsidy:

The Company is registered under NEIIPP (North-East Industrial & Investment promotion Policy) and eligible for various subsidy schemes. Accordingly, the Company has accounted the following eligible subsidies under various schemes on accrual basis.

₹inCr.

Description Opening Claim

Receivable

Accounted During

Current Year

Received During

Current Year

Ineligible to be

Refunded

Written off During the

Year

Closing Claim

Receivable Freight Subsidy 75.37 19.18 - - - 94.55

Insurance Subsidy

54.57 21.57 (27.95) - (0.17) 48.02

| 105 |

Interest Subsidy

14.35 - - (4.71) (14.35) (4.71)

Grand Total 144.30 40.74 (27.95) (4.71) (14.52) 137.87

Thecurrentfinancialyearclaimtowardssubsidyamountingto₹40.74Cr.hasbeenadjustedwith respective expenditure (Previous FY 49.05 Cr). Further out of the above total claimreceivableanamountto₹38.46Crispendingforsubmission.

Further, interest subsidy claims pertaining to the period from 01.04.2017 to 31.03.2020 amounting ₹14.35 Cr has beenwritten off based on the communication from IndustriesDepartment. As per the communication, on account of changes incorporated in the scheme during November’2016, the claims towards Interest Subsidy, made by BCPL stands ineligible underrevisedschemeinvouge.Consideringthesame,aliabilityof₹4.71hasbeencreatedforrefunding interest subsidy previously allowed to BCPL for the FY 2016-17.

iv. Videnotificationno20/2007-CEdated25.04.2007asamendedfromtimetotime,eligibleunitsinNERwasavailingexcisedutyrefund.BCPLwaseligibleundertheschemetilltransitiontoGST.InordertoenableeligibleindustriesinNERtocontinueunderspecialbenefitscheme,DepartmentofIndustrialPolicyandPromotion(DIPP)videnotificationdated05thOctober,2017 read with Circular No. 1060/9/2017-CX dated 27th November, 2017 issued by Central BoardofExcise andCustoms, extended thebenefit to all eligibleunits inNER.Under thescheme, BCPL is entitled for budgetary support on supply of primary finished goods.Accordingly,BCPLhas submitteda claimof ₹61.18Cr. (PreviousFYNil) towardsGST thebudgetary support scheme and the same has been recognised as “Other Operating Income”.

24. Land & Building: The Company is in possession of total 3904 bigha (Previous year 3904 bigha) of leaseholdlandand190bighaoffreeholdlandof₹94.65Cr.and₹3.87Cr.(PreviousYear:₹94.65Cr.and₹3.87Cr.)respectively.Outofwhich,titledeedsforfreehold(190bigha)andleasehold(520bigha)landamountingto₹3.87Cr.and₹15.38Cr.(PreviousYear:₹3.87Cr.and₹15.38Cr.)respectivelyarependingexecutionfortransferinthenameoftheCompany.AlthoughtheCompanyenjoyscompleteownership of the lease hold land which has been handed over by the Government of Assam (GoA) after acquisition of land from private owners under Land Acquisition Rule, but periodic patta for 3384 bigha of lease hold land for 30 years has been issued in the name of the Company as per Land Registration Act of Assam, accordingly the lease hold land has been treated as long term lease under Ind-AS 116. Full payment has been settled on possession of the land and no lease amount is payable. The amount is being amortised over the lease period.

25. Trade payables: Trade payable pertaining to related party stands at `74.18 Cr. out of which the payable to ‘OIL’ as on 31.03.2021 is `42.98 Cr (Previous FY 66.76 Cr) after adjustment of ₹9.48 Cr towards NG shortfall for current financial year (Previous FY 30.52Cr). Further anamount of ₹140.68 Cr (Previous FY 176.13 Cr) is shown as retention under note no. 11 “Financial Liability’ towards NG of previous period. During the current FY an amount of ₹35.44 Cr has been considered as ‘other income’ out of the total retention amount based on settlement of dispute by a joint committee of both M/s OIL and BCPL. The joint Committee of both M/s OIL and BCPL was constituted to work out the shortfall gas value as per Gas Supply and Purchase Agreement (GSPA). The balance amount of retention amounting to ₹140.68 Cr. will be settled subsequently in line with the dispute resolution plan.

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26. Disclosure as per requirements of Ind-AS 19 – “Employees benefit”.

i. Revision of pay & other benefits:Theproposalforrevisionofpay&otherbenefitsforBoardandbelowBoardlevelofficerdulyrecommendedbyBoardwassubmittedtotheGovernment,butthesamewaspendingforapprovalbytheGovernmentduetonon-fulfilmentoftheaffordabilityclauseandotherconditionsstipulatedintheguidelinenotifiedbyDepartmentofPublicEnterprise,Government of India, with reference to 3rd Pay Revision Committee’s recommendation. With the accountingoffeedstocksubsidyfromFY2015-16,theprofitabilityofthecompanywasimprovedin the FY 2019-20 and BCPL’s position in respect of affordability clause also improved. With improvedfinancials,BCPLhassubmittedarevisedproposal to theadministrativeministry forapproval of implementation of 3rd Pay Revision in the company with effect from 01.01.2017 vide Letter Dated 14.08.2020. Accordingly, necessary provision towards pay revision amounting to ₹63.20CrwasmadeinthebooksofaccountsforofficersduringFY2019-20.

Insimilarline,thewagenegotiation/revisionofunionisedstaffsandnon-executivesisalsodueand various negotiations in this regards were to take place. Accordingly, a provision pertaining towagerevisionofnon-executiveshasbeenprovidedamountingto₹15.39CrforperiodendeduptoFY2019-20.Besidestheabove,provisionforcurrentyearFY2020-21forbothexecutivesand non-executives amounting to ₹23.10 Cr has been accounted. Also, the provision towardsPerformanceRelatedPay (PRP)payable to theexecutivesandnon-executivesonrevisedscalebased on 3rdPRChasbeenprovidedforonestimatedbasisamountingto₹4.67Cr.

ii. Employees Provident Fund: The Company’s contribution to provident fund is remitted to Employees Provident Fund maintained with Regional Provident Fund Commissioner, Tinsukia, Assam,onafixedpercentageoftheeligibleemployee’ssalaryandchargedtoStatementofProfitand Loss.

iii. Gratuity:TheCompanyhasadefinedbenefitgratuityplanfundinvestedwithLICandthefundis managed by a trust. Gratuity is paid to the staff member who has put in a minimum qualifying period of 5 years of continuous service on superannuation, resignation, termination or to the nominee on death. The valuation of liability on gratuity at the yearend has been estimated based on actuarial valuation and differential liability over the previous year has been provided in the StatementofProfitandLoss.Theactuarialvaluationhasbeencarriedoutasperprinciplelaiddown in IND AS19 & Guidelines GN26 issued by Institute of Actuaries of India.

iv. Leave Encashment: The Employees are entitled to accumulate Earned leave and half pay leave which can be availed during service period. Employees are also allowed to encash the accumulated Earned Leave during the service period and on resignation. Further, the accumulated Earned leave and Half Pay Leave can be encashed by the employees on superannuation or by nominee on death. The valuation of liability on leave salary at the yearend has been estimated based on actuarial valuation and differential liability over the previous year has been provided in the Statement of ProfitandLoss.TheactuarialvaluationhasbeencarriedoutasperprinciplelaiddowninINDAS19 & Guidelines GN26 issued by Institute of Actuaries of India.

v. Superannuation Benefits: The Company had received the approval to its proposal of “Employees SuperannuationBenefit andPost-RetirementMedical benefit” scheme from itsAdministrativeMinistry, Government of India, effective from the date of issue of approval (February 06, 2018). Accordingly,aSuperannuationTrustwasformedinthecurrentfinancialyearandapolicyfromLIC was taken on 01.10.2020 through the Trust for the purpose of pension to the employees,

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after adjusting the accumulated fund balance of the erstwhile scheme, considering employer contribution @4% of basic plus DA from 06.02.2018 to 30.09.2020. Monthly contribution @4% of basic plus DA is deposited to the Fund through Trust regularly from October’20 onwards. A scheme is also maintained with LIC by the company with contribution @2% of basic plus DA from 06.02.2018 towards PRMS. Further, the company has submitted for enhancement of contributiontowardssuperannuationbenefitschemefrompresentapprovedpercentageof6%to 13.19 % (making it total to 30 % as per the 2nd PRC). The matter is being actively considered byadministrativeministrybasedon the affordability criteria and is expected tobe approved.Accordingly,aprovisionof₹5.25CrhasbeenprovidedduringthecurrentFYpertainingtotheabove increase.

vi. Thereconciliationanddisclosureoffundedandnon-fundeddefinedbenefitschemesincomplianceto the Ind-As 19 are detailed hereunder.

a. Net employee benefit expense (recognized in employee cost) for the year ended 31st

March, 2021 & 31st March, 2020.

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20Current Service Cost 2.11 1.75 1.23 1.09Past Service Cost - - - -Net Interest Cost 0.09 (0.06) 0.46 0.25Actuarial Gain/loss - - 3.75 3.66Totalexpensesincludedinemployeebenefitexpense 2.20 1.69 5.44 5.00

b. Amount recognized in Other Comprehensive Income for the year ended 31st March, 2021

₹inCr.

ParticularsGratuity

2020-21 2019-20Actuarial (gain)/ loss on obligations (0.63) 1.88Returnonplanassets(excludingamountsincludedinnetinterestexpense) 0.84 0.00Experienceadjustments 2.05 0.10Recognized in other comprehensive income 2.26 1.99

c. Changesinthepresentvalueofthedefinedbenefitobligationfortheyearended31st March, 2021 and 31st March, 2020 are as follows:

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20Current service cost 2.11 1.75 1.23 1.09Interest cost 0.73 0.46 0.46 0.25Transfer In 0.00 0.00 0.00 0.00Benefitspaid 0.18 0.73 2.11 2.09Actuarial (gain)/ loss on obligations 1.42 1.98 3.76 3.66Defined benefit obligation 14.79 10.71 11.05 7.71

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d. Changes in the fair value of plan assets for the year ended 31st March, 2021 and 31st March, 2020 are as follows:

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20Interest income 0.65 0.52 0.00 0.00Returnonplanassets(excludingamountsincludedinnetinterestexpense)–OCI (0.84) 0.00 0.00 0.00Contribution by Employer 1.39 1.84 0.00 0.00Benefitspaid 0.18 0.73 0.00 0.00Service cost (Transfer in) 0.00 0.00 0.00 0.00Closing fair value of plan assets 10.40 9.38 0.00 0.00

e. Details of the investment pattern for the above-mentioned funded obligations is as under:

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20LIC Fund 10.40 9.38 0.00 0.00Insurer managed funds 0.00 0.00 0.00 0.00

f. The principal assumptions used in determining above-mentioned obligations for the Company's plans are shown below:

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20Discount rate (in %) 6.91 6.69 6.91 6.69Salary Escalation (in %) 6.00 6.00 6.00 6.00Rate of employee turnover (in %) - - - -Attrition Rate (in %) 1.00 1.00 1.00 1.00Inflation(in%) 6.00 6.00 6.00 6.00Medical cost trend rate (in %) NA NA NA NALifeexpectationfor(inyears): IALM

2006-2008 ULTIMATE

IALM 2006-2008 ULTIMATE

IALM 2006-2008 ULTIMATE

IALM 2006-2008 ULTIMATE

g. A quantitative sensitivity analysis for significant assumption as at 31st March 2021 is as shown below:

₹inCr.

Gratuity Plan 31-Mar-21 31-Mar-21Assumptions Discount rate Future salary increases

Sensitivity Level (%) 0.50% increase

0.50% decrease

0.50% increase

0.50% decrease

Impactondefinedbenefitobligation-(Amount) 13.47 16.26 15.91 13.68

₹inCr.

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Gratuity Plan 31-Mar-20 31-Mar-20Assumptions Discount rate Future salary increases

Sensitivity Level (%) 0.50% increase

0.50%decrease

0.50% increase

0.50%decrease

Impactondefinedbenefitobligation – (Amount) 9.73 11.80 11.57 9.86

₹inCr.Leave encashment 31-Mar-21 31-Mar-21

Assumptions Discount rate Future salary increases

Sensitivity Level (%) 0.50% increase

0.50% decrease

0.50% increase

0.50% decrease

Impactondefinedbenefitobligation- (Amount) 10.14 12.24 12.24 10.14

₹inCr.Leave encashment 31-Mar-20 31-Mar-20

Assumptions Discount rate Future salary increases

Sensitivity Level (%) 0.50% increase

0.50% decrease

0.50% increase

0.50% decrease

Impactondefinedbenefitobligation - (Amount) 7.10 8.58 8.58 7.09

h. The following payments are expected contributions to the defined benefit plan in futureyears:

₹inCr.

ParticularsGratuity Leave encashment

2020-21 2019-20 2020-21 2019-20Within thenext12months(nextannual reporting period) 0.12 0.10 0.09 0.07Between 2 and 5 years 0.84 0.61 0.76 0.53Between 5 and 10 years 2.06 1.70 1.73 1.41Beyond 10 years 61.73 43.49 45.87 30.63Totalexpectedpayments 64.75 45.90 48.45 32.64

i. Theaveragedurationofthedefinedbenefitplanobligationattheendofthereportingperiod is 24 years (31 March 2020: 25 years).

j. Historyofexperienceadjustmentisasfollows:

₹inCr.

ParticularsGratuity

31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17Present value of obligation 14.79 10.71 7.24 5.08 3.47Plan assets 10.40 9.38 7.75 4.94 2.62Experienceadjustments 2.05 0.10 0.54 0.16 (0.08)

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₹inCr.

ParticularsLeave encashment

31-Mar-21 31-Mar-20 31-Mar-19 31-Mar-18 31-Mar-17Present value of obligation 11.05 7.71 4.80 3.17 4.20Plan assets 0.00 0.00 0.00 0.00 0.00Experienceadjustments 4.22 2.32 2.21 3.48 0.74

27. Claim of Work Contract Tax from Govt. of Assam₹inCr.

Details of claim as under Current Year Previous YearOpening Claim as on 01.04.2020 2.53 2.53Claimforthefinancialyear2020-21 0.07 0.00Total Claim: 2.60 2.53Less: Received during the year 0.00 0.00(Add) / Less: Claim adjusted/reversed 0.00 0.00Receivable as at 31.03.2021 2.60 2.53

28. Taxability of interest income from short term deposit (STDRs) during Project period

During construction period (from inception to 02.1.2016), interest income earned from parking of fund in short term deposits arising out of parking of fund from Capital subsidy, Loan & Equity which islinkedtotheprojectcostwastreatedastaxableincomebyTaxAuthority.BCPLhadpreferredanappeal with ITAT, Guwahati. Subsequently, appeal effect order was passed on 14.06.2017 by the ITAT upholdingthattheaforesaidincomewillnotbetaxablefortheAssessmentYear(AY)2009-10and2010-11andagainstthisorderarefundamountof₹7.77Cr.waspassedintheFY2017-18.Further,onrequestforrectificationorder,foranamountof₹0.03Cr.and₹0.35Cr.wasallowedbytaxauthorityfor AY 2009-10 & AY 2010-11 during the FY 2018-19 towards short interest refunded. This refund amount along with interest was received in the FY 2019-20.

Subsequent to the ITAT order for AY 2009-10 and AY 2010-11, submission was made to CIT (Appeal) to consider the matter pertaining to subsequent AY 2011-12 to 2015-16 in line with the ITAT judgment sincematterforsubsequentyearswassimilarinnature.However,thefinaljudgmentwaspassedbythe CIT (Appeal) on 12.03.2018 for AY up to 2014-15 and on 18.01.2019 for AY 2015-16 by holding interest incomereceivedagainst investmentsoutofborrowed fundsas taxable.Against thisorderasumof₹14.30Cr.wasreceivedduringtheFY2018-19(forAYupto2014-15)and₹0.83Cr.wasreceived in the FY 2019-20 (for AY 2015-16) after adjustment of Income Tax on interest incomegenerated out of investment of borrowed fund. Considering the decision of the CIT (Appeal) as unjust and a deviation with the ITAT decision for preceding AY’s, BCPL again preferred an appeal before the ITAT for the AY 2011-12 to 2015-16.

TheITAT,GuwahatifinallydisposedofallthependingappealsfortheAY2011-12to2015-16infavourof BCPL and passed orders on 26.10.2020 granting full relief to BCPL upholding that all the interest received from investment in short term deposit of fund arising from Capital Subsidy, Equity capital andBorrowedfundascapitalreceiptandhencenottaxable.BasedontheorderoftheITAT,Guwahati,refund orders were passed by the AO, Circle-1, Dibrugarh on 19.01.2021 and the amount of refund finallyreceivedinthecompanyaccounton22.01.2021asdetailedbelow:

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₹inCr.

Assessment YearDebt Income

Considered as Capital Receipt

Tax Refund received on Debt Income with

interest thereonDate of Refund

2011-12 3.83 2.02 22.01.20212012-13 0.54 0.26 22.01.20212013-14 1.84 0.85 28.01.20212014-15 16.79 8.54 22.01.20212015-16 1.90 0.39 22.01.2021

Total 12.06

29. Income Tax

During the FY 2019-20, BCPL evaluated the prospects of migrating into the new tax regime asintroducedvideamendmentbytheFinanceAct2020undersection115BAAoftheIncomeTaxAct.Underthenewtaxregime,incometax@22%waspayableandtherewouldnotbeanyMATliabilityundersuchoption.Sincethenewtaxregimewasfoundtobemorebeneficialtothecompanybasedonvariousanalyses,BCPLhadadoptedthenewtaxregimew.e.f.FY2019-20.

ProvisionforIncomeTaxtowardsthecurrentfinancialyearhasbeenkeptat₹190.64crore(PreviousFY Nil) after adjustment of brought forward un-absorbed depreciation amounting to `193.50 crore. TheCompanyhasalreadydepositedadvance taxamounting to₹180.17 includingTDSduring thecurrentfinancialyear.

Balanceof‘UnabsorbedDepreciation’asperIncomeTaxReturnfortheAY2020-21standsat`193.50 crorewhichhasbeenconsideredfordeterminingtheIncomeTaxprovisionforthecurrentFY2020-21(i.e for AY 2021-22). Accordingly, the balance of ‘Unabsorbed Depreciation’ will be fully utilised and the balance carry forward will be ‘Nil’ as follows:

₹inCr.

Nature Period AY Balance B/F Adjusted For Current FY Balance C/FUnabsorbed Depreciation

2018-2019 3.42 3.42 0.002019-2020 190.08 190.08 0.00

30. GST Credit and Utilisation:

a) Following are the details of GST credit and utilisation for the period 2020-21:

₹inCr.

Sl. No.Location Assam Uttar Pradesh

Particulars IGST CGST SGST IGST CGST SGSTA Opening Balance of ITC 0 4.7 4.35 0.41 0.06 0.06B InputTaxcreditavailed 142.95 36.61 36.61 0 0.02 0.02C TaxespaidthroughITC 142.95 41.31 40.96 0.21 0 0D Taxes paid through ITC (IGST liability

adjusted with CGST/SGST Credit)35.43 -17.89 -17.54 0 0 0

E TaxesPaidinCash 224.09 1.5 1.5 0 0 0F TotalTaxesPaidduringtheyear(C+D+E) 402.47 24.92 24.92 0.21 0 0G Closing Balance of ITC 0 0 0 0.20 0.08 0.08

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*InputTaxCreditof₹30.10Cr.availedpertainingtoDuliajanUnitwasdisputedbythedepartment.The decision of the department was challenged by BCPL before the CESTAT. The CESTAT pronounced the order during the FY 2019-20 and the decision was not in favour of BCPL Accordingly the said GST CreditwasreversedunderprotestintheFY2019-20andhasbeenkeptinothernonfinancialassets(Note 5). The Company has challenged the CESTAT order before the honourable Guwahati High Court inthecurrentfinancialyear.ThehonourableGuwahatiHighCourthaspassedastayorderondated07.12.2020 for any coercive action against the company relating to the matter in issue.

b) Service tax /Goods & Service Tax on Liquidated Damages /Price Retention Schedule( PRS )

Commissioner, GST had passed an order during the FY 18-19 for recovery of certain amount against ServiceTaxonLiquidatedDamages/PriceRetentionSchedule(PRS)fortheperiodfrom01.07.2012to 30.06.2016. The aforesaid order was passed with reference to provisions of the Finance Act 1994 in servicetaxregimereadwithSection174ofCentralGoods&ServiceTax(CGST)Act2017.

BCPLhaddeposited₹7.90Cr.toexchequeraccounttowardsservicetaxdemand&preferredanappealbefore CESTAT which is yet to be disposed. The above amount has been shown under Contingent Liability under note no 22 above.

31. Financial risk management :

i. The Company’s financial riskmanagement is an integral part of how to plan and execute itsbusinessstrategies.Thisnoteexplainsthesourcesofriskwhichtheentityisexposedtoandhowthe company manages the risk.

The Company’s Board of Directors have overall responsibility for the establishment and oversight of the company’s risk management framework.

ii. The Company’s principal financial liabilities comprise of loans & advances, trade and otherpayables.TheCompany’sprincipalfinancialassetsincludeloans,tradeandotherreceivables,andcash and cash equivalents that derive directly from its operations.

iii. TheCompanyisexposedtomarketrisk,creditriskandliquidityrisk.TheCompanyreviewsitsfinancialriskandtakeappropriatemitigationplanbasedontherequirement.

Market Risk

Marketriskistheriskthatthefairvalueoffuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketprices.Itisariskofchangesinmarketpricessuchasforeignexchangerates and interest rates thatwill affect Company’s income or the value of its holding of financialinstruments.

i. Interest rate risk

a. Thecompanymanagesitsinterestrateriskbyhavingabalancedportfoliooffixedandvariablerateloansandborrowings.TheCompany’sobjectiveistomaximizelowinterestrateborrowings.

b. Interest rate sensitivity

With all other variables held constant, the following table demonstrates the sensitivity to a reasonablypossiblechangeininterestratesonfloatingrateportionofloansandborrowings.

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₹inCr.

Particulars Increase/decrease in basis points

Effect on profit before tax

31 March 2021 SBI Loan +100 +13.41 -100 -13.4131 March 2020SBI Loan +100 +15.93 -100 -15.93

ii. Foreign currency risk

The Company transacts business in local currency and in foreign currency, primarily U.S. dollars, Euros & Japanese Yen mainly for import of Butene 1, catalysts & chemicals and spares for its imported equipment’s through LCs. The Company does not have foreign currency loans, however, has foreign currencyliabilitiesandoutstandingforeignLetterofCredits.Theexposuretoforeignexchangeriskof the Company is not substantial. The Company manages its foreign currency risk by keeping foreign currencyexposureatminimum.

Foreign currency sensitivity:

The following table demonstrates the sensitivity in the USD, Euro, and other currencies, with all other variablesheldconstant.TheimpactontheCompany’sprofitbeforetaxisduetochangesinthefairvalue of monetary assets and liabilities in foreign currency. The Company does not have monetary items that form part of net investment in foreign operation and therefore no impact on equity on this account.

₹inCr.

Particulars Change in currency ex-change rates

Effect on profit before tax

For the year ended March 31, 2021US Dollar 3% -0.68 -3% 0. 68EURO 6% - -6% -Japanese yen 7% -0.10

-7% 0.10For the year ended March 31, 2020US Dollar 3% -0.37 -3% 0. 37EURO 6% -0.47 -6% 0.47Japanese yen 7% -0.73

-7% 0.73

iii. Equity price risk

The Company does not have any equity risk.

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iv. Liquidity risk:

The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys an appropriate cash management system.

Liquidityrisk-Maturityprofile

₹inCr.

As at 31 March 2021 On Demand

Less than 3 Months

3 to 12 Months

1 to 5 Years

> 5 Years Total

Interest-bearing loans and borrowings

200.23 60.77 320.37 1756.69 183.86 2521.92

Interest Payable 0.88 41.23 117.17 281.41 14.82 455.51Trade and other payables 121.56 - - - - 121.56Otherfinancialliabilities 255.57 57.01 65.30 0.28 - 378.14Other – specify - - - - - -

₹inCr.

As at 31 March 2020 On Demand

Less than 3 Months

3 to 12 Months

1 to 5 Years

> 5 Years

Total

Interest-bearing loans and borrowings

18.12 369.82 437.19 1,893.19 463.51 3181.83

Interest payable 1.46 57.03 155.51 460.45 18.49 692.94Trade and other payables 142.00 - - - - 142.00Otherfinancialliabilities 305.69 7.87 67.66 1.60 - 382.82

Other specify - - - - - -

v. Credit risk

Creditriskistheriskthatacounterpartywillnotmeetitsobligationsunderafinancialinstrumentorcustomercontract,leadingtoafinancialloss.TheCompanyisexposedtocreditriskfromitsoperatingactivities primarily for trade receivables, including deposits with banks.

Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored.

Financial Instruments and Cash Deposits

Credit risk frombalanceswithbanksand financial institutions ismanaged inaccordancewith theCompany’s policy. Investments of surplus funds are made as per approved methodology. Credit limits of all authorities are reviewed by the Management on regular basis.

The aging analysis of trade receivables as on the reporting date is as follows:

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₹inCr.

ParticularsNeither past

due not impaired

Past due but not impaired

TotalLess than 30 days

30 to 60 days

60 to 90 days

Above 90 days

Trade receivables as of 31 March 2021

57.56 6.31 1.38 - 2.47 67.72

Trade receivables as of 31 March 2020

- - - - 2.87 2.87

Provision for Doubtful Debts / Claims

Provisions 31 March 2021 31 March 2020Start of the year 17.17 -Provision for doubtful Debts / Claims 19.06 17.17Receivables / Claims written off during the year as uncollectable 19.06 -Unused amounts reversed - -End of the year 17.17 17.17

32. Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in ordertosupportitsbusinessandmaximizetheshareholdervalue.

The Company maintains its capital structure as per approved funding pattern of the project cost of the Company by Government of India ensuring viability of the project. No changes were made in the objectives, policies or processes during the years ended 31st March 2021 and 31st March 2020.

However, the Company’s gearing ratio, which is net debt divided by total capital plus net debt is furnished in the table below. The Company includes within net debt, interest-bearing loans and borrowings, trade and other payables, less cash and short-term deposits.

₹inCr.

Particulars As at 31 March 2021

As at 31 March 2020

Interest-bearing loans and borrowings including payables 2,638.73 3,326.35Less: Cash and Cash Equivalents 1340.57 42.92Net debt 1298.16 3283.43 Equity 1,417.67 1,417.67Total Capital 2,811.26 2,073.05Capital and net debt 4,109.42 5356.48Gearing ratio 0.32 0.61

33. Accounting classifications and fair value measurements

TheCompanyusesthefollowinghierarchyfordetermininganddisclosingthefairvalueoffinancialinstruments by valuation technique:

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Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level2:othertechniquesforwhichallinputswhichhaveasignificanteffectontherecordedfairvalueare observable, either directly or indirectly

Level3:techniqueswhichuseinputsthathaveasignificanteffectontherecordedfairvaluethatarenot based on observable market data

Set out below is a comparison by class of the carrying amounts and fair values of the Company’s financialinstrumentsthatarecarriedinthefinancialstatements:

Asat31March2021thecompanyheldthefollowingfinancialinstrumentscarriedatfairvalueonthestatementoffinancialposition:

₹inCr.

Particulars Carrying Amount 31.03.2021

Fair ValueLevel 1 Level 2 Level 3

Financial assets at amortised cost:Non-current Loans and receivables 0.02 - - -Other Financial Assets (Feed Stock Subsidy Claim) 391.78CurrentTrade receivables 67.72 - - -Cash and cash equivalents 1340.57 - - -Other Financial Assets (It includes Feed Stock & NEIIPP Subsidy) 1131.29

- - -

Total 2931.38 - - -

Financial liabilities at amortised cost:Non-currentBorrowings 1935.81 - - -Otherfinancialliabilities 0.28Current - - -Borrowings 210.23 - - -Otherfinancialliabilities 749.01 - - -Trade payables 121.56 - - -Total 3016.89 - - -

Asat31March2020theCompanyheldthefollowingfinancialinstrumentscarriedatfairvalueonthestatementoffinancialposition:

₹inCr.

Particulars Carrying Amount 31.03.2020

Fair ValueLevel 1 Level 2 Level 3

Financial assets at amortised cost:Non-current Loans and receivables 24.87 - - -Other Financial Assets (Feed Stock Claim) 645.79Current

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Particulars Carrying Amount 31.03.2020

Fair ValueLevel 1 Level 2 Level 3

Trade receivables 2.87 - - -Cash and cash equivalents 42.92 - - -Other Financial Assets (It includes Feed Stock & NEIIPP Subsidy) 1852.62 - - -Total 2569.07 - - -Financial liabilities at amortised cost:Non-currentBorrowings 2,351.12 - - -Otherfinancialliabilities 1.60CurrentBorrowings 423.12 - - -Otherfinancialliabilities 783.23 - - -Trade payables 150.10 - - -Total 3709.17 - - -

Cashandshort-termreceivables,tradereceivables,tradepayablesandothercurrentfinancialliabilitiesapproximatetheircarryingamountslargelyduetotheshort-termmaturitiesoftheseinstruments.

Thefairvaluesofnon-currentfinancialassets(suchassecuritydeposits)andlong-termvariable-rateborrowings are considered to be same as their carrying values, as the impact of fair valuation is not material.

34. Leases

Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contractsexistingonApril1,2019usingthemodifiedretrospectivemethod.TheCompanyrecordedthelease liability at the present value of the lease payments discounted at the incremental cost of capital of 1 Year SBI MCLR + 0.25% i.e. 8.70% and the right of use asset at its carrying amount.

Ason31.03.2021,ROUAsset balance stands at ₹ 223.68 crore andLeaseLiability at ₹ 1.60Cr. Thedifferenceof₹222.08Cr.isonaccountofreclassificationofprepaidleaserentexpenditureoflandtoROU asset aligning with IND AS presentation requirements.

Lease Liabilities

Reconciliation of Lease Liabilities:

₹inCr.Particulars Year ended March 31, 2021

Balance at April 1, 2020 3.39Adjustments for:Additions during the year -Deletions during the year -Accredition of interest 0.22Lease Liabilities paid during the year 2.01Balance at March 31, 2021 1.60Current 1.32Non-Current 0.28

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Maturity analysis of Lease LiabilitiesParticulars Less than 3 months 3 to 12 months > 1 Year TotalLease Liabilities (Current) 0.39 0.93 0.00 1.32Lease Liabilities (Non Current) 0.00 0.00 0.28 0.28Total 0.39 0.93 0.28 1.60

Amount recognized in Statement of Profit and Loss:

Particulars Year ended March 31, 2021Depreciation on right-of-use assets 10.75Interestexpenseonleaseliabilities 0.22Total 10.97

35. CSR Expenditure: Havingnowenteredtheprofitregime,abudgetof₹11.50crorehasbeenapprovedforCSRactivitiesforthefinancialyear2020-21withvariousprojectsunderthebroadheadsofHealthand Nutrition, Promotion of Education, Swachhata and Sanitation, Skill enhancement & alternative livelihood and Sustainable Development and Rural Development. Baseline survey for long term projects arebeingcarriedout.Theprojectsarebeingexecutedthroughthedistrictadministrationandwillbemonitored and implemented through a CSR Coordination Team. In terms of the CSR Amendment Rules 2021,within30days fromclosureof financialyear, theunspentamount towardsongoingprojectshave been transferred to an ‘Unspent CSR Bank’ Account, stipulated in Sub Section 6, Section 135 of Companies Act' 2013.

36. Proposed dividend and tax :

FortheFY2020-21,anamountof₹222.00Cr,whichis‘15.66%ofpaidupEquityCapital’hasbeenproposed as dividend. The same will be disbursed after approval by the shareholders.

37. Related Party Disclosures:

Names of Related parties and nature of related party relationships:

a. Entities which exercise control/ joint-control/ significant influence over the company :Gail (India) LimitedNumaligarhRefineryLimitedOil India LimitedGovernment of Assam

b. Key management personnel :

Sh. Reep Hazarika - Managing Director

Sh. Pruthiviraj Dash - Director (Finance)

Mrs. Ruli Das Sen- Company Secretary

c. Entities where Key Management Personnel and their relatives control/ joint control or exercise significant influence : NIL

d. The transactions carried out with the related parties during the existence of related party relationship as per Ind AS 24 in the ordinary course of business:

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₹inCr.

Particulars FY 20-21 FY 19-20

Gail (India) LimitedManpower cost 7.70 9.56Purchase of goods (Butene-1, propylene, NG etc.) 2.94 17.17Marketing Commission 54.27 53.67ExpendituretowardsDRC 0.61 1.49Interest on Borrowing 14.58 17.37Borrowing from Holding Company 0.00 200.00Balance payable at the reporting date 38.68 40.95Numaligarh Refinery LimitedSale/ Purchase of goods 270.56 458.40Balance payable at the reporting date 8.99 31.91Oil India LimitedSale/ Purchase of goods 324.92 547.53Balance payable (NG supply) at the reporting date 163.17 285.14Outstanding (infrastructure cost) at the reporting date 20.35 20.35

Key management personnelRemuneration to Sh. A K Singh- Managing Director (Up to 12.02.2020)ShortTermBenefits–₹0.35Cr.,PostRetirementBenefits–₹0.79Cr.

0.00 1.14

Remuneration to Sh. Reep Hazarika – Managing Director (Short TermBenefitsOnly) 0.34 0.04

Remuneration to Sh. Pruthiviraj Dash - Director (Finance) and CFO(ShortTermBenefitsOnly) 0.36 0.33

Remuneration to Mrs. Ruli Das Sen- Company Secretary (Short TermBenefitsOnly) 0.25 0.25

Sitting Fees Paid to Independent Directors 0.03 0.01

38. Balance Confirmation

Balance confirmation has been sought from certain vendors/contractors/authorities for balancesgrouped under loans and advances, deposits and sundry creditors. However reconciliation of accounts with parties is carried out as an ongoing process.

39. Claims due to Micro , Small & Medium enterprise

Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”):

Particulars 2020-21 2019-20i. The principal amount and the interest thereon remaining unpaid to any

supplier as at the end of each accounting year;10.48 2.13

ii. The amount of interest paid by the buyer in terms of section 16, along with the amounts of the payment made to the supplier beyond the appointed day during each accounting year;

0.00 0.00

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iii. The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year ended)butwithoutaddingtheinterestspecifiedunderthisAct;

0.00 0.00

iv. The amount of interest accrued and remaining unpaid at the end of each accounting year; and

0.00 0.01

v. The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditureundersection23.

0.00 0.00

The above information regarding micro, small and medium enterprises have been determined to the extentsuchpartieshavebeenidentifiedonthebasisofinformationavailablewiththeCompany.Thishas been relied upon by the auditors.

40. Segment Reporting

(a) The Company has a single operating segment that is “Production and sales of polymers to downstream plastic industries”. Accordingly, the segment revenue, segment results, segment assetsandsegmentliabilitiesarereflectedbythefinancialstatementsthemselvesasatandforthefinancialyearended31st March 2021.

(b) Entity wise disclosures:

i. Information about products and services: The Company is in a single line of business of “Production and sales of polymers to downstream plastic industries”.

ii. Geographic Information’s: The Company operates presently in the business of production and sale of polymers in India. Accordingly, revenue from customers and all assets are located in India only.

iii. Information about major customers: During the year ended 31st March 2021, three major Customerscontributedaround10.28%oftherevenueamountingto₹243.04Cr.(previousyear₹183.02Cr.).

41. Earnings per Share (EPS)

ThefollowingreflectstheincomeandsharedatausedinthebasicanddilutedEPScomputations:

₹inCr.

Particulars 31-Mar-21 31-Mar-20Gain/(-Loss) attributable to equity holders of the Company:Continuing operations 739.90 1507.60Discontinued operation - -Gain/(-Loss) attributable to equity holders of the Company for basic earnings

739.90 1507.60

Gain/(-Loss) attributable to equity holders of the Company adjusted for the effect of dilution

739.90 1507.60

Weighted Avg. No’s of Equity shares for basic EPS * (in No.) 1417670000 1417670000Effect of dilution: - -

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Weighted Avg. No’s of Equity shares adjusted for the effect of dilution *

- -

Earnings per equity share: in ₹ -Basic 5.22 10.63 -Diluted 5.22 10.63

42. Impairment: The project was commissioned recently and the plant is now fully stabilized. During the currentfinancialyear&thepreviousfinancial,theplantoperatedatmorethan100%capacity.Withtheaccountingoffeedstocksubsidy,thenetworthofthecompanyhasbeensignificantlyimproved&the future projections are also healthy. Further there is no indication that the assets of the company require impairment testing as per IND AS 36. Accordingly, no impairment losses has been estimated andrecognisedinstatementofProfitandLoses.

43. COVID-19: During the previous FY 2019-20, due to impact of Covid-19, the inventory value was reduced to NRV for finished goods and replacement cost for raw-materials was considered. Theongoing pandemic led to some revenue compression in the initial period of FY 2020-21, however, the situation improved as the normalcy in market conditions returned. Despite COVID-19 related disruptions,thePolymermarkethasshownconsistentdemandwithbuoyantpricesandthefinancialyear has been good for BCPL. Oddly enough, after the initial setback, the Covid -19 pandemic has given an impetus to the Polymer industry with rising demand.

44. Deferred Tax Liability: DuetotimingdifferenceofdepreciationavailableunderIncomeTaxActandCompaniesAct,amountof₹79.34CrhasbeenconsideredasdeferredtaxexpenditureforFY2020-21.Duetotheabove,DeferredtaxLiability(net)standsat₹246.99Crason31.03.2021ascomparedto₹167.64Crason31.03.2020.

Sd/- Sd/- Sd/- (Reep Hazarika) (Pruthiviraj Dash) (Ruli Das Sen) Managing Director Director (Finance) & CFO Company Secretary DIN: 08667195 DIN: 08253888 M. No. F4012

As per our separate report on Even Date For RKP Associates Chartered Accountants, FRN No. 322473E

Sd/- (Ravi Kumar Patwa)Place : Dibrugarh / Guwahati / Silchar PartnerDate : 25th May, 2021 Membership No. 056409

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Cash Flow Statement for the period ended 31st March 2021(` in crore)

Particulars 31.03.2021 31.03.2020 Cash Flow From Operating ActivityNetprofitBeforeTax&ExtraOrdinaryItems 1,010.45 1,847.39 Adjustement For:Depreciation/ Amortisation 392.68 390.85 ItemsNotClassifiedinProfit&Loss (2.26) (1.99)Accounting of Revenue Grant (391.78) (2,351.14)Accounting of NEIPP & Other Subsidy (22.14) (49.05)Accounting of Budgetary Support (61.18) - Accounting of VAT Reimbursement Claim (278.50) - Deferred Income (Capital Subsidy) (211.64) (205.95)Interest Paid 235.32 252.43 Provision For Doubtful Debts - 17.17 Provision for Obsolesence of Stores/ Spares - 21.66 Cash Flow before Working Capital Change 670.95 (78.62)Adjustment For Working Cap ChangesChanges in Financial Assets (Current) 41.09 142.45 Changes in Financial Assets (Non- Current) 24.43 (17.87)Changes in Financial Liability (Current) (45.56) 129.65 Changes in Financial Liability (Non-Current) 0.95 2.34 Cash Generated From Operating Activity 691.86 177.94 CurrentTax(AdvanceTaxPaid) (179.75) - DeferredTax - - Cash Before Extra Ordinary Items 512.10 177.94 Extra-OrdinaryItems - - Net Cash From Operating Activity 512.10 177.94 Cash Flow From Investing ActivityNet Addition/ Purchase of Assets (32.67) (101.73)Capital Work In Progress (14.80) (1.52)Net Cash Flow From Investing Activity (47.47) (103.25)Cash flow From Financing ActivityProceeds From Government Grant 1,728.25 201.06 Repayments of Borrowings (660.14) (386.81)Borrowing From Others 0.23 405.00 Interest paid (235.32) (252.43)Net Cash Flow From Financing Activity 833.01 (33.18)Net Increase/(Decrease) In Cash & Cash Equivalent 1,297.65 41.52 Opening Cash & Cash Equivalent 42.92 1.40 Closing Cash & Cash Equivalent 1,340.57 42.92

Sd/- Sd/- Sd/- (Reep Hazarika) (Pruthiviraj Dash) (Ruli Das Sen) Managing Director Director (Finance) & CFO Company Secretary DIN: 08667195 DIN: 08253888 M. No. F4012 As per our separate report on Even Date For RKP Associates Chartered Accountants, FRN No. 322473E Sd/- (Ravi Kumar Patwa)Place : Dibrugarh / Guwahati / Silchar PartnerDate : 25th May, 2021 Membership No. 056409

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Comments of the Comptroller and Auditor General of India

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF BRAHMAPUTRA CRACKER AND POLYMER LTD. FOR THE YEAR ENDED 31 MARCH 2021.

The preparation of financial statements of Brahmaputra Cracker and Polymer Ltd. for the yearended31March2021inaccordancewiththefinancialreportingframeworkprescribedundertheCompanies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditors appointed by the Comptroller and Auditor General of India under Section 139 (5) of the ActisresponsibleforexpressingopiniononthefinancialstatementsunderSection143oftheActbased on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 25 May 2021.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of Brahmaputra Cracker and Polymer Ltd. for the year ended31 March 2021 under Section 143(6) (a) of the Act. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited primarilytoinquiriesofthestatutoryauditorsandcompanypersonnelandaselectiveexaminationof some of the accounting records.

Onthebasisofmysupplementaryauditnothingsignificanthascometomyknowledgewhichwouldgive rise to any comment upon or supplement to statutory auditors' report under section 143 (6) (b) of the Act.

For and on the behalf of the Comptroller and Auditor General of India Sd/-Place: Kolkata (Suparna Deb)Date: 28th July, 2021 Director General of Audit (Mines) Kolkata

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Brahmaputra Cracker and Polymer LimitedRegistered OfficeHouse No 6, Bhuban Road, Uzanbazar, Guwahati 781001, Assam

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